Urban,
Glen. L., John. R. Hauser, and John. H. Roberts (1990), "Prelaunch
Forecasting of New Automobiles: Models and Implementation," Management
Science, Vol. 36, No. 4, (April), 401-421. To be reprinted
in Modeling for Management, Vol. 1, George P. Richardson,
ed., Dartmouth Publishing Co., Hampshire England. (Honorable Mention,
Best Article in Marketing Science Literature, 1990).
This paper
develops and applies a prelaunch model and measurement system
to the marketing planning of a new automobile. The analysis
addresses active search by consumers, dealer visits, word-of-mouth
communication, magazine reviews, and production constraints
- issues that are important in understanding consumer response
to durable goods. We address these issues with a detailed consumer
flow model which monitors and projects key consumer transitions
in response to marketing actions. A test-vs.-control consumer
clinic provides data which, with judgment and previous experience,
are used to "calibrate" the model to fit the sales history of
the control car. We illustrate how the model evolved to meet
management needs and provided suggestions on advertising, dealer
training, and consumer incentives. Comparison of the model's
predictions to actual sales data suggests reasonable accuracy
when an implemented strategy matches the planned strategy.