Regression and Endogeneity Bias in Big Marketing Data

Big marketing data offers more interesting and challenging problems but along with greater opportunities. These days calibration is performed in the marketing field for supporting the managers in marketing-mix decisions. It is also done to create general knowledge that paves a way for better understanding of marketing relationships. Hence it indirectly supports decisions. The marketing data is adulterated with endogeneity and the regressions, both requiring optimizable response model. The models should always be implementable if actual decision support is the objective. Endogeneity can be removed with the help of structural equations. Owing to this endogeneity challenge it is difficult to understand how the managers can reach their decisions. Endogeneity removal allows improvement in managerial decision-making (C) 2015 The Authors. Published by Elsevier B.V.