Quantifying the Benefits of Individual Level Targeting In the Presence of Firm Strategic Behavior

@inproceedings{Dong2005QuantifyingTB,
  title={Quantifying the Benefits of Individual Level Targeting In the Presence of Firm Strategic Behavior},
  author={Xiaojing Dong and Puneet Manchanda and Pradeep Chintagunta},
  year={2005}
}
Targeting – setting marketing policy differentially for different customers or segments is an important marketing practice. Previous approaches to quantifying the benefits from targeting calibrated a response model and used the variation in response parameter estimates to compare the firm’s profits under targeting schemes at different levels of aggregation. Implicit in this approach is the assumption that the data do not reflect any strategic behavior that the firm may be engaged in vis-à-vis… CONTINUE READING

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