Research Expertise: Marketing and advertising strategy, integrated marketing communications, and dynamic market response models, including preparing for product harm crisis
Courses Taught: Integrated Marketing Communications, Marketing Management, New Product Development
Consulting: Sales and brand management
- UC Davis Chancellor’s Fellow
- Led MBA International Study Trips to Singapore, Malaysia, Thailand, China, Brazil and Argentina
- Co-founder of annual international Marketing Dynamics Conference
- Groundbreaking marketing research gives managers powerful tools to determine the most strategic media mix for ad campaigns and measure the effectiveness of integrated marketing communications
Professor Prasad Naik develops new models and methods to improve the practice of marketing. He has published over 40 articles in prestigious journals such as Journal of Marketing Research, Marketing Science, Management Science, Nature Reviews, Journal of the American Statistical Association, Journal of the Royal Statistical Society, Biometrika, Journal of Econometrics, and The Accounting Review. He serves on the editorial boards of Marketing Science, Journal of Marketing Research, The International Journal of Research in Marketing, Quantitative Marketing and Economics, Marketing Letters and Journal of Interactive Marketing.
Naik is a recipient of the UC Davis Chancellor’s Fellowship, a Frank Bass Award, The Journal of Interactive Marketing Best Paper Award and an Academy of Marketing Science Doctoral Dissertation Award. He has been honored as a William O’Dell Award Finalist, a Marketing Science Institute Top Young Scholar, American Marketing Association Consortium Faculty and Professor of the Year at UC Davis for outstanding teaching. He has presented over 50 seminars at prestigious institutions such as IBM, MIT, Harvard, Yale, Columbia, Cornell, Dartmouth, Chicago, Berkeley, Rice and Darden, as well as at global conferences in Australia, Belgium, China, Canada, France, Germany, India, New Zealand, the Netherlands, Portugal, Spain and Singapore.
Prior to doctoral studies, Naik worked for several years with Dorr-Oliver and GlaxoSmithKline, where he acquired invaluable experience in sales, distribution and brand management.
Naik holds a Ph.D. from the University of Florida, an MBA from the Indian Institute of Management, Calcutta and a B.S. in chemical engineering from the University of Bombay.
India’s rapidly expanding middle class and steady increase in household disposable income has attracted the interest of multinational retailers like IKEA, Apple, WalMart and Tesco. But estimating consumer demand has been challenging, says Professor Prasad Naik, and the standard methods being used have proved unreliable.
You will learn from the same world-class faculty who teach in our internationally ranked full-time MBA program. relationships take root and thrive in our collaborative learning environment.
I want UC Davis MBA students to be inspired and be enlightened. I want them to go out and make actual change in the practice of management because of what they learn here. That’s my unstated rule.
Professor Prasad Naik discusses how research and teaching complement each other, where students benefit from his research and he benefits from their ideas, input and feedback. “What I teach I bring it back into my research; what I research I bring it back into the classroom. Research and teaching are two sides of the same coin.”
- Best Paper Award, Journal of Interactive Marketing, 2010.
- Doctoral Consortium Faculty, Institute for Operations Research and the Management Science (INFORMS), Marketing Science, 2008.
- Doctoral Consortium Faculty, American Marketing Association, 2008.
- Professor of the Year Award, UC Davis Graduate School of Management, 2008, 1998.
- O’Dell Award Finalist, Journal of Marketing Research Editorial Board, 2008.
- Chancellor’s Fellow, UC Davis, 2004-09.
- Doctoral Consortium Faculty, American Marketing Association, 2004
- Top 20 Young Scholars in Marketing, Marketing Science Institute, 2003.
Four faculty members have received prestigious fellowships for their research productivity, teaching excellence and dedicated service to the School.
Associate Professor Greta Hsu, a specialist in organizational behavior and economic sociology, was awarded the Seeman Faculty Term Fellowship. The fellowship is made possible by a generous gift from alumna May Seeman ’89 and her husband, Philippe.
by Jacqueline Romo
Recognizing India’s transformative role in the global economy, Professor Prasad Naik and Assistant Professor Ashwin Aravindakshan co-chaired the 8th Annual Global Marketing Dynamics Conference in Jaipur in July. The international forum engaged more than 100 leading academics, C-level executives and senior managers at the intersection of cutting-edge marketing theory and successful practice.
What is the optimal advertising budget and allocation that maximizes profits across multiple regions and over time? The chief marketing officer of a Fortune 500 company raised the question after she noticed that increasing her company’s advertising expenditures enhanced sales as expected, while profits diminished.
Marketing managers and their companies are better served by spending less on building brand loyalty up front and maintaining a reserve for advertising during a post-crisis period. Further, ad spending after a crisis is more effective in building brand interest than before a crisis.
How should forward-looking managers plan advertising if they envision a product-harm crisis in the future? To address this question, Professor Olivier Rubel, Professor Prasad Naik and Professor Shuba Srinivasan propose a dynamic model of brand advertising in which, at each instant, a nonzero probability exists for the occurrence of a crisis event that damages the brand’s baseline sales and may enhance or erode marketing effectiveness when the crisis occurs. Because managers do not know when the crisis will occur, its random time of occurrence induces a stochastic control problem, which they solve analytically in closed form. More importantly, the envisioning of a possible crisis alters managers’ rate of time preference: anticipation enhances impatience.
Dynamic Marketing Budgeting for Platform Firms: Theory, Evidence and Application
Journal of Marketing Research, 2011
Few studies address the marketing budgeting problems of platform firms operating in two-sided markets with cross-market network effects, i.e., the demand from one customer group of the platform influences the demand from its other customer group. Yet such firms, e.g., media firms like newspapers whose customers are subscribers and advertisers, are prevalent in the marketplace and invest significantly in marketing.
Current models posit that awareness of advertising declines immediately and gradually once it is over, although anecdotal evidence from managers suggests that awareness stays constant for a while and then decays rapidly. This pattern arises because consumers remember advertisements for a finite time before they forget.
A spontaneous acceleration problem led Toyota to recall eight million cars globally and suspend sales of several models in November 2009 and in January. To make matters worse, in February Toyota suffered another blow when reports surfaced of faulty brakes on the Prius hybrid. The defects have battered the company’s reputation, resulting in huge losses and sinking consumer confidence.
Professor Prasad Naik’s groundbreaking marketing research gives managers powerful new tools and innovative approaches to determine the most strategic media mix for ad campaigns and measure the effectiveness of integrated marketing communications.
I want UC Davis MBA students to be inspired and be enlightened. I want them to go out and make actual change in the practice of management because of what they learn here. That’s my unstated rule. –Prasad Naik, Professor of Marketing
Professor Prasad Naik and Professor Kay Peters from the Center for Interactive Marketing and Media Management at the University of Münster, Germany, have won the 2010 Journal of Interactive Marketing Best Paper Award for their article, “A Hierarchical Marketing Communications Model of Online and Offline Media Synergies.”
The Big Pharma Dilemma: Develop New Products or Promote Existing Ones
Nature Reviews Drug Discovery, 2009
Big Pharma should take a closer look at their dosage of R&D spending on new drugs versus marketing existing ones, according to new research by Professor Prasad Naik. Pharmaceutical companies face the dilemma of how much to invest in developing new drugs and promoting existing ones.
Online reverse auctions generate real-time bidding data that could be used via appropriate statistical estimation to assist the corporate buyer’s procurement decision. To this end, Professor Prasad Naik and co-author Sandy Jap from Emory University develop a method, called BidAnalyzer, which estimates dynamic bidding models and selects the most appropriate of them.
Extracting Forward-Looking Information from Security Prices: A New Approach
The Accounting Review, 2008
This paper by Professors Prasad Naik, Chih-Ling Tsai and co-author Dan Weiss from Tel Aviv University proposes a new index to extract forward-looking information from security prices and infer market participants’ expectations of future earnings. The index, called market-adapted earnings (MAE), utilizes stock returns and fundamental accounting signals to estimate market expectations of future earnings at the firm level. MAE outperforms time-series models (e.g., random-walk) in predicting future earnings. Results demonstrate the usefulness of MAE for firms that have no analyst following.
Companies spend hundreds of millions of dollars annually on advertising to build and maintain awareness for their brands in competitive markets. However, awareness formation models in the marketing literature ignore the role of competition. Consequently, we lack both the empirical knowledge and normative understanding of building brand awareness in dynamic oligopoly markets.
Perils of Using OLS to Estimate Multimedia Communications Effects
Journal of Advertising Research, 2007
Companies invest millions of dollars in various forms of marketing communications to impact customers’ awareness, attitudes, purchases, and, ultimately, profitability. An important question for marketers and shareholders alike is: what effects do marketing investments have on market performance?
Newspapers that invest more money in their newsrooms make more money. The media industry’s recent impulse to slash jobs to cut costs is not only ineffective, but can lead to more red ink, according to a study by Professor Prasad Naik and his research partners from the University of Missouri, Professor Murali K. Mantrala, Shrihari Sridhar and Professor Esther Thorson. Their study, “Uphill or Downhill? Locating your Firm on a Profit Function,” was published in the April 2007 issue of the Journal of Marketing.
Extending the Akaike Information Criterion for Mixture Regression Models
Journal of the American Statistical Association, 2007
In this paper, Professors Prasad Naik and Chih-Ling Tsai, with co-author Peide Shi from Nuclear Safety Solutions Ltd., examine the problem of jointly selecting the number of components and variables in finite mixture regression models.
Newspapers that cut budgets in response to shrinking profits risk triggering a “suicide spiral,” according to a recent study. “The media industry’s recent impulse to slash jobs to cut costs is not only ineffective, it can lead to more red ink,” notes Professor Prasad Naik, who co-authored the study. Read the study online.
In Markov-switching regression models, Professors Prasad Naik, Chih-Ling Tsai and co-author Aaron Smith from the UC Davis Department of Agricultural and Resource Economics use Kullback–Leibler (KL) divergence between the true and candidate models to select the number of states and variables simultaneously.
Constrained Inverse Regression for Incorporating Prior Information
Journal of the American Statistical Association, 2005
Inverse regression methods facilitate dimension-reduction analyses of high-dimensional data by extracting a small number of factors that are linear combinations of the original predictor variables. But the estimated factors may not lend themselves readily to interpretation consistent with prior information.
Companies spend millions of dollars on advertising to boost a brand’s image and simultaneously spend millions of dollars on promotion that many believe calls attention to price and erodes brand equity. We believe this paradoxical situation exists because both advertising and promotion are necessary to compete effectively in dynamic markets. Consequently, brand managers need to account for interactions between marketing activities and interactions among competing brands.
Isotonic Single-Index Model for High-Dimensional Database Marketing
Computational Statistics and Data Analysis, 2004
While database marketers collect vast amounts of customer transaction data, its utilization to improve marketing decisions presents problems. Marketers seek to extract relevant information from large databases by identifying significant variables and prospective customers. In small databases, they could calibrate logistic regression models via maximum-likelihood methods to determine significant variables and assess customer’s response probability.
Understanding the Impact of Synergy in Multimedia Communications
Journal of Marketing Research, 2003
Many advertisers adopt the integrated marketing communications perspective that emphasizes the importance of synergy in planning multimedia activities. However, the role of synergy in multimedia communications is not well understood.
Professor Prasad Naik was one of the top-five finalists for the prestigious 2008 William F. O’Dell Award, for his pioneering research on the role of synergy in integrating marketing communications. The American Marketing Association awards the honor for articles published in the Journal of Marketing Research over the last five years. The articles are judged by the Editorial Board as the “most significant, long-term contribution to marketing theory, methodology, and/or practice.”
in this paper, Professors Prasad Naik and Chih-Ling Tsai derive a new model selection criterion for single-index models, AIC, by minimizing the expected Kullback-Leibler distances between the true and candidate models.
The pro-posed criterion selects not only relevant variables but also the smoothing parameter for an unknown link function. Thus, it is a general selection criterion that provides a unifies approach to model selection across both parametric and nonparametric functions. Monte Carlo studies demonstrate that AIC performs satisfactorily in most situations.
Partial Least Squares Estimator for Single-index Models
Journal of the Royal Statistical Society, 2000
The partial least squares (PLS) approach first constructs new explanatory variables, known as factors (or components), which are linear combinations of available predictor variables. A small subset of these factors is then chosen and retained for prediction.
A New Dimension Reduction Approach for Data-Rich Marketing Environments: Sliced Inverse Regression
Journal of Marketing Research, 2000
In data-rich marketing environments (e.g., direct marketing or new product design), managers face an ever-growing need to reduce the number of variables effectively. To accomplish this goal, Professors Prasad Naik and Chih-Ling Tsai and co-author Michael Hagerty introduce a new method called sliced inverse regression (SIR), which finds factors by taking into account the information contained in both the dependent and independent variables.
Controlling Measurement Errors in Models of Advertising Competition
Journal of Marketing Research, 2000
Commercial market research firms provide information on advertising variables of interest, such as brand awareness or gross rating points, that are likely to contain measurement errors. This unreliability of measured variables induces bias in the estimated parameters of dynamic models of advertising. Consequently, advertisers either under- or overspend on advertising to maintain a desired level of brand awareness.
A key task of advertising media planners is to determine the best media schedule of advertising exposures for a certain budget. Conceptually, the planner could choose to do continuous advertising (i.e., schedule ad exposures evenly over all weeks) or follow a strategy of pulsing (i.e., advertise in some weeks of the year and not at other times).