Convertro utilizes a new form of the Micro-BLP type heterogeneous consumer logit model (Berry, Levinsohn, Pakes, 2004) in a system of equations form. This general consumer-level market demand specification is applicable to a wide variety of market response models due to its construction from a consumer-level model of choice. This allows Convertro to specify a model that reflects the nature of the market ecosystem in which a brand’s customers engage, and captures the way consumers respond to a brand’s marketing activities and engage with the brand and its products.
We realize this is a lot of data science talk. We happily set up deep-dives and model discussions with your teams to be sure all questions are answered in a digestible manner.