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Panel Data Analysis: A Nontechnical Introduction for Marketing Researchers

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Handbook of Market Research

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Abstract

The analysis of panel data is now part of the standard repertoire of marketers and marketing researchers. Compared to the analysis of cross-sectional data, panel data allow marketers to alleviate endogeneity concerns when linking an independent variable (e.g., price) to an outcome variable (e.g., sales volume). The more accurate estimates that result from panel data analysis help improve marketers’ decision-making in focal areas such as price setting and marketing budget allocation. Besides, panel data allow marketers to track customer behavior changes and distinguish real loyalty effects (i.e., same customer repeatedly buys a brand) from spurious effects (i.e., the same number of, but each time different set of, customers buys a brand). This chapter provides a nontechnical introduction to panel data analysis. Marketers will learn how to manage and analyze panel datasets in Stata. They will learn about the focal panel data estimators (pooled OLS, fixed effects, and random effects estimator), their underlying assumptions, advantages, and pitfalls. Besides, we introduce the between effects estimator, the combined approach, the Hausman-Taylor approach, and the first differences estimator as further techniques to analyze panel data. Finally, readers will receive an introduction to advanced topics such as dynamic panel models, panel data multilevel modeling, and using panel data to address measurement errors.

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Author information

Authors and Affiliations

  1. University of Groningen, Groningen, Niederlande

    Arnd Vomberg

  2. Goethe University Frankfurt, Frankfurt, Germany

    Simone Wies

Authors
  1. Arnd Vomberg
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  2. Simone Wies
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Correspondence to Arnd Vomberg .

Editor information

Editors and Affiliations

  1. Universität Mannheim, Mannheim, Germany

    Christian Homburg

  2. Inst. Informations Systems and Marketing Marketing & Sales Research Group, Karlsruher Institut für Technologie, Karlsruhe, Germany

    Martin Klarmann

  3. Fakultät für Betriebswirtschaftslehre, Universität Mannheim, Mannheim, Baden-Württemberg, Germany

    Arnd Vomberg

Section Editor information

  1. University of Mannheim, Mannheim, Germany

    Christian Homburg

  2. Karlsruhe Institute of Technology, Karlsruhe, Germany

    Martin Klarmann

  3. University of Groningen, Groningen, Niederlande

    Arnd Vomberg

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Vomberg, A., Wies, S. (2022). Panel Data Analysis: A Nontechnical Introduction for Marketing Researchers. In: Homburg, C., Klarmann, M., Vomberg, A. (eds) Handbook of Market Research. Springer, Cham. https://doi.org/10.1007/978-3-319-05542-8_19-2

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  • DOI: https://doi.org/10.1007/978-3-319-05542-8_19-2

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  • Print ISBN: 978-3-319-05542-8

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Chapter history

  1. Latest

    Panel Data Analysis: A Nontechnical Introduction for Marketing Researchers
    Published:
    03 March 2022

    DOI: https://doi.org/10.1007/978-3-319-05542-8_19-2

  2. Original

    Panel Data Analysis: A Nontechnical Introduction for Marketing Researchers
    Published:
    26 August 2021

    DOI: https://doi.org/10.1007/978-3-319-05542-8_19-1

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