Complaint Calls as a Proxy for Perceived Quality: The Turkish Dishwasher Demand Estimation

Abstract
The paper estimates dishwasher demand and supply in Turkey. The constructed Stackelberg type oligopolistic competition, with its strong testable implications is demonstrated to be consistent with a stable market composed of a leader firm and followers. The paper has an important contribution to demand estimation literature as well. The complaint calls rate for a product is offered and shown to be a valid proxy to help the problem of omitted variable bias due to the unobserved characteristics as perceived quality or after sale service quality. Elasticities calculated for each demand determinant can help durable good firms in emerging countries to use their investment and marketing resources more efficiently.

Keywords: Demand Estimation, Proxy, Complaint Calls Rate, Unobserved Characteristics, Durable Goods Market.

JEL classification numbers: D12, D21, D43


How to Cite:

Yurtseven, C. (2016) Complaint Calls as a Proxy for Perceived Quality: The Turkish Dishwasher Demand Estimation. Journal of Global Analysis, 6: 71-85.


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