Invited Paper — Learning Models: An Assessment of Progress, Challenges, and New Developments

Posted: 5 Dec 2013

See all articles by Andrew T. Ching

Andrew T. Ching

Johns Hopkins University - Carey Business School

Tulin Erdem

New York University (NYU) - Leonard N. Stern School of Business; New York University (NYU) - Department of Marketing

Michael P. Keane

Arizona State University (ASU) - Economics Department; University of Technology, Sydney (Visiting July 2006-Present)

Date Written: December 4, 2013

Abstract

Learning models extend the traditional discrete choice framework by postulating that consumers have incomplete information about product attributes and that they learn about these attributes over time. In this survey we describe the literature on learning models that has developed over the past 20 years, using the model of Erdem and Keane as a unifying framework [Erdem T, Keane M (1996) Decision-making under uncertainty: Capturing dynamic brand choice processes in turbulent consumer goods markets. Marketing Sci. 15(1):1-20]. We describe how subsequent work has extended their modeling framework and applied learning models to a wide range of different products and markets. We argue that learning models have contributed greatly to our understanding of consumer behavior — in particular, in enhancing our understanding of brand loyalty and long-run advertising effects. We also discuss the limitations of existing learning models and potential extensions. One key challenge is to disentangle learning as a source of dynamics from other key mechanisms that may generate choice dynamics (inventories, habit persistence, etc.). Another is to enhance identification of learning models by collecting and using direct measures of signals, perceptions, and expectations.

Keywords: learning models, choice modeling, dynamic programming, structural models, brand equity

Suggested Citation

Ching, Andrew T. and Erdem, Tulin and Keane, Michael P., Invited Paper — Learning Models: An Assessment of Progress, Challenges, and New Developments (December 4, 2013). Marketing Science, Vol. 32, No. 6, 2013; pp. 913–938; DOI: 10.1287/mksc.2013.0805, Available at SSRN: https://ssrn.com/abstract=2358365

Andrew T. Ching (Contact Author)

Johns Hopkins University - Carey Business School ( email )

100 International Drive
Baltimore, MD 21202
United States

Tulin Erdem

New York University (NYU) - Leonard N. Stern School of Business ( email )

44 West 4th Street
Suite 9-160
New York, NY NY 10012
United States

New York University (NYU) - Department of Marketing ( email )

Henry Kaufman Ctr
44 W 4 St.
New York, NY
United States

Michael P. Keane

Arizona State University (ASU) - Economics Department ( email )

Tempe, AZ 85287-3806
United States

University of Technology, Sydney (Visiting July 2006-Present)

PO Box 123 Broadway
NSW 2007
Australia
480-965-1053 (Phone)
480-965-0748 (Fax)

Here is the Coronavirus
related research on SSRN

Paper statistics

Abstract Views
423
PlumX Metrics