Article ID: | iaor1994869 |
Country: | United States |
Volume: | 12 |
Issue: | 1 |
Start Page Number: | 103 |
End Page Number: | 124 |
Publication Date: | Dec 1993 |
Journal: | Marketing Science |
Authors: | Robinson William T., Desarbo Wayne S., Reibstein David J., Ramaswamy Venkatram |
Keywords: | economics, demand, statistics: empirical, statistics: regression |
The PIMS (Profit Impact of Marketing Strategies) data entail sparse time-series observations for a large number of strategic business units (SBUs). In order to estimate disaggregate marketing mix elasticities of demand, a natural solution is to pool differnet SBUs. The traditional, a priori approach is to pool together those SBUs which one believes in advance to be very similar with respect to their marketing mix elasticities. The authors propose an alternative maximum likelihood, latent-pooling method for simultaneously pooling, estimating, and testing linear regression models