Byungyeon Kim - Faculty & Research - Harvard Business School
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Byungyeon Kim


Doctoral Student


Byungyeon Kim is mainly interested in empirical industrial organization, microeconomic utility models, and product policy. He received MS in Marketing in 2016 and BBA in 2009, both from Korea University Business School. Prior to his graduate studies, Byungyeon worked as a marketer at POSCO.
Working Papers
  1. How Do Your Sales Efforts Pay Off? Dynamic Panel Data Analysis in the Nerlove-Arrow Framework

    Doug J. Chung, Byungyeon Kim and Byoung Park

    We estimate a sales response model to evaluate the short- and long-term value of a sales representative’s detailing visit to different types of physicians. By understanding the dynamic effect of sales calls across heterogeneous physicians, we provide guidance on the design of optimal call patterns in route sales. Our analyses reveal that the long-term persistence effect of detailing is more pronounced for specialist physicians, whereas the contemporaneous marginal effect is higher for generalists. We also provide a key methodological insight to the marketing and economics literature. We show that in the Nerlove-Arrow framework, moment conditions typically used in conventional dynamic panel data methods become vulnerable to serial correlation in the error structure. We discuss the associated biases and present a robust set of moment conditions for both lagged dependent and predetermined explanatory variables in estimation. Furthermore, we show that conventional tests to detect serial correlation have weak power and can be misleading, resulting in a misuse of moment conditions, which leads to incorrect inference. We provide theoretical illustrations and Monte Carlo simulations to validate our claims.

    Keywords: Nerlove-Arrow framework; stock-of-goodwill; dynamic panel data; serial correlation; instrumental variables; sales effectiveness; detailing; pharmaceutical industry; Data and Data Sets; Sales; Analysis; Pharmaceutical Industry;

    Citation:

    Chung, Doug J., Byungyeon Kim, and Byoung Park. "How Do Your Sales Efforts Pay Off? Dynamic Panel Data Analysis in the Nerlove-Arrow Framework." Harvard Business School Working Paper, No. 17-108, June 2017. (Revised March 2018.)  View Details