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Journal of the Academy of Marketing Science

, Volume 3, Issue 2, pp 192–199 | Cite as

Validation of stochastic models: Some perspectives

  • Tanniru R. Rao
Article
  • 71 Downloads

Abstract

The focus of the paper is the process of model validation. The discussion illustrates some problems encountered in validating stochastic models, with special reference to market behavior models. A brief discussion of some important dimensions of model validation are presented. The discussion focuses on the role of simulation to generate sample universes for realistic output validation (both at micro and macro levels) of a stochastic model. Also, some light is shed upon two neglected aspects of model validation, experimentation to test the realism of a model's policy implications and a comparative evaluation with existing models. It is hoped for that the article has raised some important issues for the attention of a serious model builder.

Keywords

Stochastic Model Consumer Behavior Macro Level Pseudo Random Number Brand Loyalty 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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References

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Copyright information

© The Academy of Marketing Science 1975

Authors and Affiliations

  • Tanniru R. Rao
    • 1
  1. 1.University of Wisconsin-MilwaukeeMilwaukeeUSA

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