Building Marketing Models

Intern. J. of Research in Marketing 17 Ž2000. 105–126 www.elsevier.comrlocaterijresmar Building models for marketing decisions:
Past, present and future
Peter S.H. Leeflang a,) , Dick R. Wittink a,b a Department of Economics, UniÕersity of Groningen, P.O. Box 800, 9700 AV Groningen, Netherlands b Yale School of Management, New HaÕen, CT, USA

Abstract
We review five eras of model building in marketing, with special emphasis on the fourth and the fifth eras, the present and the future. At many firms managers now routinely use model-based results for marketing decisions. Given an increasing number of successful applications, the demand for models that are suitable in other contexts will accelerate. At the same time the development of innovative modeling approaches pushes the practical use of models in new areas. The latter is especially critical in an environment that changes rapidly. We propose a perspective on the Anew marketingB and suggest some contributions models can make in the twenty-first century. q 2000 Elsevier Science B.V. All rights reserved.
Keywords: Models; Implementation; Model-building process; New marketing

1. Introduction
A historical perspective suggests the following five eras of model building in marketing.1
1. An era characterized by the direct application of existing operations research ŽOR. and management science ŽMS. methods to marketing problems: 1950–1965.
2. An era characterized by the adaptation of models to fit marketing problems. These larger and more complete models capture marketplace reality better but they lack simplicity: 1965–1970.
)
Corresponding author. Tel.: q
31-50-363-3686; fax: q
31-50363-7207.
E-mail address: [e-mail] ŽP.S.H. Leeflang..
1
See also Leeflang et al. Ž2000.. Definitions of the first three eras are due to Montgomery Ž1973. and Eliashberg and Lilien
Ž1993.. It should be clear that we do not imply the existence of natural boundaries between these eras.

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