Marketing Strategy and Uncertainty

This book develops a unique valuation approach to marketing and focuses on fundamental and currently neglected strategic problems. The book uses both the economic and finance paradigms to develop analytical models which can be empirically implemented while allowing for such elusive problems as the unobservability of consumer decision processes, uncertain consumer perceptions, economies of scope, and the endemic problem of measurement error. The topics covered
include: new product policy to achieve both engineering and marketing efficiency, multiperiod pricing when both demand and cost are uncertain, measuring the dynamic effects of multilevel decentralized organizations, measuring the learning and unobservable ability of workers and managers in multidivisional
firms, and compensating country managers in decentralized multinational corporations.