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Andrés Musalem
Assistant Professor of Marketing
Ph.D. University of Pennsylvania, Wharton

 

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Education:                                                                                                       

 

Ph.D. in Marketing, The Wharton School, University of Pennsylvania.

M.A. in Statistics, The Wharton School, University of Pennsylvania.

M.B.A., University of Chile.

Industrial Engineer, University of Chile.

B.Sc. in Industrial Engineering, University of Chile.

 

 

Main Research Interests:

There are multiple situations in which we would like to have more information about consumers or our competitors. For example, are all consumers loyal to a particular brand? Are all of them sensitive to price promotions? What if the product they intend to buy is not available? Will they switch to a different brand? Answering these questions, would normally require detailed information on the behavior of different consumers across different purchase occasions and a characterization of the shopping environment faced by a consumer in each of those purchase occasions.

This information, however, is not always available. Consequently, my research is focused on developing tools that enable us to learn how consumers react to different marketing variables (prices, promotions, distribution and product features) when we only have very limited information about their behavior.

What about competitors? If we introduce a new product in the market, will this be matched by our competitors by introducing similar products or by lowering prices on existing products? As in the case of consumers, answering this question would normally require having observed the competitive behavior of firms under similar circumstances, information which may not exist or that might be sometimes difficult to collect or obtain. In my research, I try to use limited information about the behavior of companies in different markets to answer these questions.

The tools developed in my research are the result of combining different marketing and economic theories of consumer and firm behavior with recent advances in the fields of Bayesian statistics (e.g., Markov chain Monte Carlo simulation, data augmentation) and econometrics (e.g., mathematical programming with equilibrium constraints).  The basic principle behind these methods relies on using the limited available information to place constraints on the unknown consumer or firm behavior.

 

 

Methodological and application areas related to my research:

 

·         Bayesian Methods, Econometrics and Stochastic Models: Bayesian statistics, missing data problems, Markov chain Monte Carlo (MCMC) methods, structural estimation, ecological inference, empirical industrial organization, stochastic dynamic programming and mathematical programming with equilibrium constraints (MPEC).

 

·         Marketing: retailing, sales promotion, category management, pricing, customer relationship management, consumer response to out-of-stocks, choice modeling, product line competition.

 

 

Published Articles and Working Papers:  

Andrés Musalem, Eric T. Bradlow and Jagmohan S. Raju (2008), "Who's Got The Coupon: Estimating Consumer Preferences and Coupon Usage from Aggregate Information" - Full TextTechnical Appendix , Journal of Marketing Research, 45 (December): 715-730.

Andrés Musalem, Eric T. Bradlow and Jagmohan S. Raju (2009), "Bayesian Estimation of Random-Coefficients Choice Models using Aggregate Data" - Full TextTechnical Appendix , Journal of Applied Econometrics, 24 (3): 490-516.

Andrés Musalem and Yogesh Joshi (2009), "How Much Should You Invest In Each Customer Relationship" - Full Text , Marketing Science, 28 (3): 555-565.

Andrés Musalem, Marcelo Olivares, Eric Bradlow, Christian Terwiesch and Daniel Corsten, “Structural Estimation of the Effect of Out-of-Stocks” – Full Text (under second-round review at Management Science).

 

SSRN: Author Page

 

 

Work In Progress:

“A structural model of product line and pricing decisions,” with Woochoel Shin.

“An Ecological-Inference model for drawing conclusions about individuals from aggregate data,” with Wagner Kamakura.

“How Wal-Mart's entry affects retailers' pricing policy,” with Carl Mela and Heamin Kim.

 

Op-Eds:

“Farmacias: ¿compensación o estrategia de marketing?,” with Ricardo Montoya, Revista Poder, August 1, 2009, Santiago, Chile. (Translation: “Pharmacies: compensation or marketing strategy?”).

“¿Cuánto bajan los precios cuando Wal-Mart entra en un Mercado?,” with Ricardo Montoya, La Tercera, January 23rd, 2009, Santiago, Chile. (Translation: “How much do prices drop when Wal-Mart enters a market?”).

“La Revolución de las Nuevas Tecnologías en el Marketing,” El Mercurio, June 21st, 2008, Santiago, Chile.(Translation: “The Revolution of New Technologies in Marketing”).

 

Industry Projects: 

Optimization/Auctions: Use of mathematical modeling to assign contracts in a combinational auction for the supply of eyeglasses for the Chilean School System (with Rafael Epstein, Gabriel Weintraub and Jaime Catalán 2001).

ECR/Category Management: Documentation of the implementation and results of the first Category Management projects in the Chilean Supermarket Industry (with Máximo Bosch, Cristián Espinoza, Cristián Paz and Martín Vega 1999-2000). 

 

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Hobbies: tennis, drums and guitar.

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GATE: Global Academic Travel Experience - South America

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   SAN PEDRO DE ATACAMA – CHILE

 

                 SAN CARLOS DE BARILOCHE-ARGENTINA

 

 

Bariloche 095

 

                 ESTANCIAS PATAGÓNICAS-ARGENTINA