Econometric modeling and analysis of technical efficiency of marketing productivity. An application to the U.S. Retail sector using stochastic frontier models

The research developed in previous project has allowed the elaboration a generic model for measuring marketing productivity, which aims to serve as a basis for obtaining measurements of productivity in companies of services sector. Furthermore, it has been possible to determine what inputs / outputs and functional forms that determine and influence that productivity and technical efficiency of the organizations are. This has been measured by econometric models and stochastic frontier. This paper applies the Theoretical Model of Marketing Productivity (TMMP), developed in earlier research, in the case of U.S. retail sector. The results shows that variables, market-based assets and investments in marketing, affect negatively to marketing productivity and financial performance, respectively, while variable, marketing resources, affect positively to financial performance and marketing productivity. Moreover, it validates the relationship between financial performance and marketing productivity, further demonstrating that the companies in the sample show a decreasing efficiency in the study period.