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Quantifying the benefits of individual-level targeting in the presence of Firm strategic behavior
The authors develop a method to quantify the benefits of individual-level targeting when the data reflect firm strategic behavior - that is, when firms (1) are engaged in targeting and (2) take into account the actions of competing firms. This article studies a pharmaceutical firm's decision on the allocation of detailing visits across individual physicians. For this analysis, the authors develop, at the individual level, a model of prescriptions and a model of detailing. Using physician panel data, they estimate, at the physician level, the parameters of the prescription and detailing models jointly using full-information Bayesian methods. The results suggest that accounting for firm strategic behavior improves profitability by 14%-23% compared with segment-level targeting. In addition, ignoring firm strategic behavior underestimates the benefit of individual-level targeting significantly. The authors provide reasons for this finding. They also carry out several robustness checks to test the validity of the modeling assumptions.Printed journal
Ketersediaan
| Call Number | Location | Available |
|---|---|---|
| PSB lt.dasar - Pascasarjana | 1 |
| Penerbit | American Marketing Association., |
|---|---|
| Edisi | - |
| Subjek | Pharmaceutical industry Models Market strategy Allocations studies Bayesian analysis Validity |
| ISBN/ISSN | 222437 |
| Klasifikasi | - |
| Deskripsi Fisik | - |
| Info Detail Spesifik | - |
| Other Version/Related | Tidak tersedia versi lain |
| Lampiran Berkas | Tidak Ada Data |