Firms' Strategic Leverage of Unplanned Exposure and Planned Advertising: An Analysis in the Context of Celebrity Endorsements

2018 ◽  
Vol 55 (1) ◽  
pp. 14-34 ◽  
Author(s):  
Timothy P. Derdenger ◽  
Hui Li ◽  
Kannan Srinivasan
Keyword(s):  
Discrete Choice ◽  
Choice Model ◽  
Early Stage ◽  
Media Exposure ◽  
New Product ◽  
Celebrity Endorsements ◽  
Consumer Awareness ◽  
New Product Introductions ◽  
Using Data ◽  
Celebrity Endorsers

Using data on advertising and sales of an innovative piece of golf equipment and the performance of its celebrity endorsers, the authors build a discrete-choice model that incorporates consumer awareness and preferences. They empirically investigate how celebrity endorsements affect consumer choices during new product introductions, the roles of planned advertising and unplanned media exposure, and how firms can strategically leverage the unplanned component. Model estimates reveal that wins in professional golf tournaments (which proxy for unplanned television exposure during weekly golf tournaments) affect awareness and that paid planned advertising impacts awareness and preferences. Focusing on Titleist equipment, counterfactual analysis demonstrates that the unplanned media exposure and planned advertising account for 22% and 24% of sales, respectively. The results also suggest that firms would benefit from coordinating the two. The planned portion should serve as a substitute for unplanned media exposure in the early stage and a complement as products age.

scholarly journals The Effect of Unconditional Cash Transfers on Adult Labour Supply: A Unitary Discrete Choice Model for the Case of Ecuador

2015 ◽  
Vol 10 (2) ◽  
Author(s):  
Andrés Mideros ◽  
Cathal O’Donoghue
Keyword(s):  
Discrete Choice ◽  
Labour Supply ◽  
Choice Model ◽  
Discrete Choice Model ◽  
Cash Transfers ◽  
Negative Income ◽  
Social Transfers ◽  
Supply Model ◽  
Using Data ◽  
Unconditional Cash Transfers

AbstractWe examine the effect of unconditional cash transfers by a unitary discrete labour supply model. We argue that there is no negative income effect of social transfers in the case of poor adults because leisure could not be assumed to be a normal good under such conditions. Using data from the national employment survey of Ecuador (ENEMDUR) we estimate the effect of the

scholarly journals Beliefs and preferences for food-safety policies: a discrete choice model under uncertainty

2018 ◽  
Vol 46 (5) ◽  
pp. 769-799
Author(s):  
Simone Cerroni ◽  
Sandra Notaro ◽  
Roberta Raffaelli
Keyword(s):  
Food Safety ◽  
Discrete Choice ◽  
Utility Theory ◽  
Choice Model ◽  
Scientific Information ◽  
Expected Utility Theory ◽  
Error Component ◽  
Bad News ◽  
New Information ◽  
Using Data

Abstract Outcomes of food policies are highly uncertain. Therefore, the public’s support for these policies depends on individuals’ beliefs and the provision of scientific information. Using data collected from a discrete choice experiment survey, we explore whether new information regarding a food-safety policy influences respondents’ support, while controlling for risk and time preferences. Additionally, we examine if support depends on whether information is perceived as either good or bad news. Results from the estimation of parametric error component logit models, based on expected utility theory and rank dependent utility theory, suggest that good and bad news affects preferences and welfare measures.

scholarly journals Discrete Choice under Risk with Limited Consideration

2021 ◽  
Vol 111 (6) ◽  
pp. 1972-2006
Author(s):  
Levon Barseghyan ◽  
Francesca Molinari ◽  
Matthew Thirkettle
Keyword(s):  
Discrete Choice ◽  
Choice Model ◽  
Unobserved Heterogeneity ◽  
Sufficient Conditions ◽  
Decision Makers ◽  
Consideration Sets ◽  
Property Insurance ◽  
Finite Set ◽  
Using Data ◽  
Standard Risk

This paper is concerned with learning decision-makers’ preferences using data on observed choices from a finite set of risky alternatives. We propose a discrete choice model with unobserved heterogeneity in consideration sets and in standard risk aversion. We obtain sufficient conditions for the model’s semi-nonparametric point identification, including in cases where consideration depends on preferences and on some of the exogenous variables. Our method yields an estimator that is easy to compute and is applicable in markets with large choice sets. We illustrate its properties using a dataset on property insurance purchases. (JEL D81, D83, D91, G22, G52)

scholarly journals A Note on the Petroleum Industry's Participation in Conservation Agreements for the Lesser Prairie Chicken

2018 ◽  
Vol 48 (1) ◽  
pp. 100-116 ◽  
Author(s):  
Richard T. Melstrom
Keyword(s):  
Economic Development ◽  
Discrete Choice ◽  
Choice Model ◽  
Endangered Species Act ◽  
Habitat Conservation ◽  
Willingness To Participate ◽  
Gas Wells ◽  
Prairie Chicken ◽  
Oil And Natural Gas ◽  
Using Data

This paper examines the petroleum industry's willingness to participate in conservation agreements for the lesser prairie chicken, a candidate for listing under the Endangered Species Act (ESA). Voluntary conservation agreements with assurances (VCAAs) can incentivize habitat conservation and sustain economic development. Using data on oil and natural gas wells in Kansas and Oklahoma, I develop a discrete choice model to examine company preferences for locating wells and participating in VCAAs for the lesser prairie chicken. Participation in VCAAs is low, but I find participating wells are concentrated in areas with the most crucial habitat.

Mixed Logit Models for Multiparty Elections

2001 ◽  
Vol 9 (2) ◽  
pp. 116-136 ◽  
Author(s):  
Garrett Glasgow
Keyword(s):  
Discrete Choice ◽  
Voting Behavior ◽  
Choice Model ◽  
Mixed Logit ◽  
Discrete Choice Model ◽  
Random Coefficients ◽  
Flexible Tool ◽  
Mixed Logit Models ◽  
Using Data ◽  
General Specification

Mixed logit (MXL) is a general discrete choice model thus far unexamined in the study of multicandidate and multiparty elections. Mixed logit assumes that the unobserved portions of utility are a mixture of an IID extreme value term and another multivariate distribution selected by the researcher. This general specification allows MXL to avoid imposing the independence of irrelevant alternatives (IIA) property on the choice probabilities. Further, MXL is a flexible tool for examining heterogeneity in voter behavior through random-coefficients specifications. MXL is a more general discrete choice model than multinomial probit (MNP) in several respects, and can be applied to a wider variety of questions about voting behavior than MNP. An empirical example using data from the 1987 British General Election demonstrates the utility of MXL in the study of multicandidate and multiparty elections.

The influence of marketing and innovation investments on alliance type choice

2015 ◽  
Vol 30 (5) ◽  
pp. 626-636 ◽  
Author(s):  
Matthew Sarkees ◽  
Ryan Luchs
Keyword(s):  
Choice Model ◽  
New Product ◽  
Internal Marketing ◽  
Clear Understanding ◽  
New Production ◽  
Data Set ◽  
Content Type ◽  
Marketing Innovation ◽  
New Product Introductions ◽  
Trade Offs

Purpose – The purpose of this paper is to explore the gap in the literature as well as investigate how the combination of internal marketing or innovation investments with new product introductions influences alliance type choices. Most research on marketing–innovation resource allocation decisions has focused on trade-offs in internal investments such as advertising versus research and development. Absent from this discussion is whether firms offset a weakness internally by reaching outside the boundaries of the firm through alliances. As a result, managers lack a clear understanding of the potential for complementarity using internal–external approaches to a market. Design/methodology/approach – This paper draws on the resource-based view of the firm, using a longitudinal secondary data set and a choice model. Findings – The authors find that firms that internally emphasize either marketing or innovation maintain the same approach externally with respect to alliance type choices. Thus, efforts to complement internal marketing (innovation) resource investments with innovation (marketing) alliances are not seen. However, the interaction of new product introductions with internal resource investments does result in a complementary firm approach. Originality/value – The authors bridge a gap in the resource investment literature by exploring how the internal decisions impact the external alliance choices. The authors draw on longitudinal data and show that the action of making the choice is important, as it impacts future resource decisions. The authors explore the interaction between new production introductions and internal firm investments on alliance type choice. Given that new product introductions are a key to longer-term firm success, examining these relationships enhances the managerial impact.

Diagnostics of metal samples using the results of experimental and theoretical study of positively charged microparticles formed upon sample destruction

2018 ◽  
Vol 84 (10) ◽  
pp. 23-28
Author(s):  
D. A. Golentsov ◽  
A. G. Gulin ◽  
Vladimir A. Likhter ◽  
K. E. Ulybyshev
Keyword(s):  
Experimental Data ◽  
Early Stage ◽  
Experimental Studies ◽  
Material Model ◽  
Total Charge ◽  
Cross Sectional ◽  
Practical Applications ◽  
Mechanical And Electrical Properties ◽  
Order Of Magnitude ◽  
Using Data

Destruction of bodies is accompanied by formation of both large and microscopic fragments. Numerous experiments on the rupture of different samples show that those fragments carry a positive electric charge. his phenomenon is of interest from the viewpoint of its potential application to contactless diagnostics of the early stage of destruction of the elements in various technical devices. However, the lack of understanding the nature of this phenomenon restricts the possibility of its practical applications. Experimental studies were carried out using an apparatus that allowed direct measurements of the total charge of the microparticles formed upon sample rupture and determination of their size and quantity. The results of rupture tests of duralumin and electrical steel showed that the size of microparticles is several tens of microns, the particle charge per particle is on the order of 10–14 C, and their amount can be estimated as the ratio of the cross-sectional area of the sample at the point of discontinuity to the square of the microparticle size. A model of charge formation on the microparticles is developed proceeding from the experimental data and current concept of the electron gas in metals. The model makes it possible to determine the charge of the microparticle using data on the particle size and mechanical and electrical properties of the material. Model estimates of the total charge of particles show order-of-magnitude agreement with the experimental data.

The Impact of Zoning and Built Environment Characteristics on Transit, Biking, and Walking

2019 ◽  
Vol 11 (1) ◽  
pp. 108-129
Author(s):  
Andrew G. Mueller ◽  
Daniel J. Trujillo
Keyword(s):  
Land Use ◽  
Built Environment ◽  
Discrete Choice ◽  
Travel Behavior ◽  
Choice Model ◽  
Mode Choice ◽  
Land Use Regulation ◽  
Policy Action ◽  
Development Goals ◽  
The Impact

This study furthers existing research on the link between the built environment and travel behavior, particularly mode choice (auto, transit, biking, walking). While researchers have studied built environment characteristics and their impact on mode choice, none have attempted to measure the impact of zoning on travel behavior. By testing the impact of land use regulation in the form of zoning restrictions on travel behavior, this study expands the literature by incorporating an additional variable that can be changed through public policy action and may help cities promote sustainable real estate development goals. Using a unique, high-resolution travel survey dataset from Denver, Colorado, we develop a multinomial discrete choice model that addresses unobserved travel preferences by incorporating sociodemographic, built environment, and land use restriction variables. The results suggest that zoning can be tailored by cities to encourage reductions in auto usage, furthering sustainability goals in transportation.

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