The Handbook of Marketing Research: Uses, Misuses, and Future Advances comprehensively explores the approaches for delivering market insights for fact-based decision making in a market-oriented firm. Divided into four parts, the Handbook addresses (1) the different nuances of delivering insights; (2) quantitative, qualitative, and online data gathering techniques; (3) basic and advanced data analysis methods; and (4) the substantial marketing issues that clients are interested in resolving through marketing research.
Chapter 20: Hierarchical Bayes Models
Hierarchical Bayes Models
Bayesian methods have become widespread in marketing. The past 10 years have seen a dramatic increase in their use to develop new methods of analysis and models of consumer behavior. A challenge in the analysis of marketing data is that, at the individual level, the quantity of relevant data is very limited. Respondents frequently become fatigued after providing 15 to 20 responses in a conjoint survey, and purchase histories greater than 20 observations are rare for all but a few product categories. The lack of data at the individual level corresponding to a specific construct such as preferences, coupled with the desire to account for individual differences and not treat all respondents alike, results in severe challenges to the analysis ...