Predicting consumer behaviour towards a particular product


Problem: Manufacturers, retailers, and advertising agencies understandably want to predict the decision process of an individual consumer. Consider the fol- lowing model formulated for predicting consumer behaviour towards a par- ticular product, say brand X. The variables for the model are • B(t) - buying level for brand X • M(t) - motivation/attitude towards brand X • C(t) - level of communication (e.g., advertising) of brand X where t is time

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Econometrics: Predicting consumer behaviour towards a particular product
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