Author(s)

Duncan K. H. Fong¹, Qian Chen¹, Zhe Chen², Rui Wang³

¹Department of Marketing, Pennsylvania State University, University Park, USA.
²Department of Statistics, Pennsylvania State University, University Park, USA.
³Department of Marketing, Peking University, Beijing, China.

The authors propose new Bayesian models to obtain individual-level and time-varying regression coefficients in longitudinal data involving a single observation per response unit at each time period. An application to explore the association between customer satisfaction and shareholder value is included in the paper. The Bayesian models allow the flexibility of incorporating industry and firm factors in the context of the application to help explain variations of the regression coefficients. Results from the analysis indicate that the effect of customer satisfaction on shareholder value is not homogeneous over time. The proposed methodology provides a powerful tool to explore the relationship between two important business concepts.

Bayesian Analysis, Dynamics, Heterogeneity, Customer Satisfaction, Shareholder Value

Fong, D. , Chen, Q. , Chen, Z. and Wang, R. (2017) An Application of Heterogeneous Bayesian Regression Models with Time Varying Coefficients to Explore the Relationship between Customer Satisfaction and Shareholder Value. Open Journal of Statistics, 7, 36-53. doi: 10.4236/ojs.2017.71004.