Structural Modeling in Marketing: Review and Assessment

28 Pages Posted: 13 Sep 2004  

Pradeep K. Chintagunta

University of Chicago

Tulin Erdem

University of California, Berkeley - Marketing Group

Peter E. Rossi

University of California, Los Angeles (UCLA) - Anderson School of Management

Michel Wedel

University of Maryland - Robert H. Smith School of Business, Marketing Department; University of Groningen - Faculty of Economics and Business

Date Written: September 2004

Abstract

The recent marketing literature reflects a growing interest in structural models, stemming from: 1) the desire to test a variety of behavioral theories with market data, and 2) recent developments that facilitate estimation of and inference for these models. Whether one should always go through the effort of developing such tightly parameterized models with the associated computational burden of estimating them, and whether it pays off to make strict behavioral assumptions in terms of better decisions, remain open questions. To shed some light on these issues, we provide examples of structural approaches to consumer choice and demand as well as examples where the goal is to study the nature of competition in the marketplace. From that review spawns our discussion of issues in the development and application of structural models, including their estimation, testing and validation, their applicability in the practice of marketing, and their usefulness for normative, as well as descriptive purposes.

Keywords: Structural models, dynamic models, endogeneity

JEL Classification: M3, L1, D1, D4

Suggested Citation

Chintagunta, Pradeep K. and Erdem, Tulin and Rossi , Peter E. and Wedel, Michel, Structural Modeling in Marketing: Review and Assessment (September 2004). Available at SSRN: https://ssrn.com/abstract=588903 or http://dx.doi.org/10.2139/ssrn.588903

Pradeep K. Chintagunta

University of Chicago ( email )

5807 S. Woodlawn Avenue
Chicago, IL 60637
United States
773-702-8015 (Phone)
773-702-0458 (Fax)

Tulin Erdem

University of California, Berkeley - Marketing Group ( email )

Haas School of Business
Berkeley, CA 94720
United States
510-642-4632 (Phone)
510-643-1420 (Fax)

Peter E. Rossi (Contact Author)

University of California, Los Angeles (UCLA) - Anderson School of Management ( email )

110 Westwood Plaza
Los Angeles, CA 90095-1481
United States
773-294-8616 (Phone)

Michel Wedel

University of Maryland - Robert H. Smith School of Business, Marketing Department ( email )

College Park, MD 20742
United States
301.405.2162 (Phone)
301.405.0146 (Fax)

HOME PAGE: http://www.rhsmith.umd.edu/marketing/faculty/wedel.html

University of Groningen - Faculty of Economics and Business ( email )

Postbus 72
9700 AB Groningen
Netherlands

Paper statistics

Downloads
1,756
Rank
6,792
Abstract Views
5,378