Cutting Edge Marketing Analytics: Real World Cases and Data Sets for Hands On Learning

Section III: Marketing-Mix Analytics

This section presents multiple regression analysis. A fundamental premise of marketing-mix analytics is that the mix elements affect customer behavior simultaneously. Therefore, models that estimate elasticity should reflect this notion. It is therefore necessary to estimate the joint effect of the marketing mix on customer behavior. Chapter 7, “Multiple Regression in Marketing-Mix Models,” and Chapter 8, “Design of Price and Advertising Elasticity Models,” provide the definition of elasticity, present the log-log linear model framework for estimating elasticity, and list the control variables that are necessary to include in marketing-mix models to avoid biased elasticity estimates.

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