Increasing Precision of Marketing Experiments by Matching Sales Areas

Author:

Lodish Leonard1,Pekelman Dov2

Affiliation:

1. Wharton School University of Pennsylvania.

2. Wharton School and the Reconati School of Business Administration, Tel Aviv University.

Abstract

The authors investigate methods of evaluating marketing experiments in which the experimental territories have been determined a priori. Various matching and prediction schemes are offered to predict what sales in an experimental unit would have been if no experiment had been run. These schemes are developed for predictions of both single territory sales and total sales of groups of territories. A testing method for alternative schemes is described and applied to data for one specific firm.

Publisher

SAGE Publications

Subject

Marketing,Economics and Econometrics,Business and International Management

Reference5 articles.

1. Intervention Analysis with Applications to Economic and Environmental Problems

2. RaiffaHoward, and SchlaiferRobert. “Applied Statistical Decision Theory.” Cambridge: MIT Press, 1961, 114–7.

3. WinklerRobert L. “Introduction to Bayesian Inference and Decisions.” New York: Holt, Rinehart & Winston, 1972, 363–4.

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