#5262. Note: A new approach to the modeling of spatially dependent and heterogeneous geographical regions

September 2026publication date
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Journal’s subject area:
Marketing;
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Abstract:
We propose a new spatial modeling approach to calibrate the potential impact of spatial dependency and heterogeneity on the underlying drivers of customer service and/or satisfaction measurement. The newly proposed procedure derives regionally varying coefficients, provides more flexible fitting, improves calibration fit and predictive validation, and can potentially result in augmented managerial implications compared to existing procedures by utilizing a hierarchical Bayes framework with geographical boundary effects.
Keywords:
Bayes Hierarchical Model; Customer Service/ Satisfaction; Geographically Varying Coefficients; Marketing Research; Spatial Heterogeneity

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