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1. Introduction
2. Trade-up in the world of consumer goods
3. Trade-up is a jump
4. Trade-up products are superior - example
5. Trade-up also occurs within narrower price bands
6. Trade-down
7. Requirements of the trade-up model
8. 3 aspects of the model
9. Peter Van Westendorp's Method
10. Economics of the MNL logit model
11. Economics of the nonhomothetic model
12. Nonhomothetic model (1)
13. Nonhomothetic model (2)
14. Affordability
15. Distribution of the budget constraint
16. Factors to consider with expenditure (1)
17. Maximum expenditure and observed paid price
18. Factors to consider with expenditure (2)
19. Expenditure as a function of various factors
20. Preference
21. What is preference?
22. Example: preference
23. Trade-up (1)
24. Trade-up (2)
25. Indifference curves: classic substitution
26. Indifference curves: income effects
27. Trade-up (3)
28. Example: trade-up penalty
29. Geodemographic targeting
30. Random effect specification
31. Heat maps
32. Identifying patterns in affordability
33. Identifying likelihood to trade-up
34. HB logit (MNL) vs. trade-up models (1)
35. HB logit (MNL) vs. trade-up models (2)
36. Key differences with MNL
37. Audio device example
38. HB logit and trade-up parameters
39. Market share simulations
40. Trade-up captures asymmetric price effects
41. Reduction in expenditure: simulation
42. Geodemographic targeting and max. expenditure
43. Trade-up for product A6
44. Health care example (1)
45. Health care example (2)
46. Model results
47. Parameter table
48. Results
49. Differences between NHL and MNL models
50. Price simulations
51. Posterior distribution of expenditure
52. Effect of sociodemographic parameters
53. High-tech video impact on expenditure (1)
54. High-tech video impact on expenditure (2)
55. Estimation of expenditure threshold
56. Direct modeling of expenditure
57. Preference and trade-up vary by lifestage
58. The pattern in the mid-tech tier
59. Effect of professional recommendation
60. Current practice of recommendation (1)
61. Current practice of recommendation (2)
62. Conclusions
63. References

Topics Covered

• Pricing issues that arise in categories where there are differences in quality
• Introduction to a methodology for understanding budget constraints, price-value of product attributes and price power of superior goods
• Case studies in health and beauty, and consumer electronics categories
• Comparison to results obtained from standard choice and conjoint methods

Links

Series:

• Bayesian Analysis in Marketing

Categories:

• Marketing & Sales

Talk Citation

Publication History

• Published on January 27, 2010