<s>
The	O
resurgence	O
in	O
the	O
use	O
of	O
Bayesian	O
methods	O
is	O
largely	O
due	O
to	O
the	O
developments	O
over	O
the	O
last	O
few	O
decades	O
in	O
computational	B-Application
methods	O
;	O
and	O
expanded	O
availability	O
of	O
detailed	O
marketplace	O
data	O
–	O
primarily	O
due	O
to	O
the	O
birth	O
of	O
the	O
World	O
Wide	O
Web	O
and	O
explosion	O
of	O
the	O
internet	O
.	O
</s>
<s>
Bayesian	B-General_Concept
decision	I-General_Concept
theory	I-General_Concept
can	O
be	O
applied	O
to	O
all	O
four	O
areas	O
of	O
the	O
marketing	O
mix	O
.	O
</s>
<s>
The	O
use	O
of	O
Bayesian	B-General_Concept
decision	I-General_Concept
theory	I-General_Concept
in	O
new	O
product	O
development	O
allows	O
for	O
the	O
use	O
of	O
subjective	O
prior	O
information	O
.	O
</s>
<s>
The	O
methodology	O
used	O
for	O
this	O
analysis	O
is	O
in	O
the	O
form	O
of	O
decision	B-Algorithm
trees	I-Algorithm
and	O
‘	O
stop’/‘go’	O
procedures	O
.	O
</s>
<s>
Bayesian	B-General_Concept
decision	I-General_Concept
theory	I-General_Concept
can	O
be	O
used	O
in	O
looking	O
at	O
pricing	O
decisions	O
.	O
</s>
<s>
As	O
markets	O
are	O
dynamic	O
environments	O
it	O
is	O
often	O
difficult	O
to	O
fully	O
apply	O
Bayesian	B-General_Concept
decision	I-General_Concept
theory	I-General_Concept
to	O
pricing	O
strategies	O
without	O
simplifying	O
the	O
model	O
.	O
</s>
<s>
An	O
example	O
of	O
the	O
application	O
of	O
Bayesian	B-General_Concept
decision	I-General_Concept
theory	I-General_Concept
for	O
promotional	O
purposes	O
could	O
be	O
the	O
use	O
of	O
a	O
test	O
sample	O
in	O
order	O
to	O
assess	O
the	O
effectiveness	O
of	O
a	O
promotion	O
prior	O
to	O
a	O
full	O
scale	O
rollout	O
.	O
</s>
<s>
In	O
place	O
of	O
taking	O
the	O
frequentist	O
route	O
in	O
aiming	O
for	O
a	O
universally	O
acceptable	O
conclusion	O
through	O
iteration	B-Algorithm
,	O
it	O
is	O
sometimes	O
more	O
effective	O
to	O
take	O
advantage	O
of	O
all	O
the	O
information	O
available	O
to	O
the	O
firm	O
to	O
work	O
out	O
the	O
‘	O
best’	O
decision	O
at	O
the	O
time	O
,	O
and	O
then	O
subsequently	O
when	O
new	O
knowledge	O
is	O
obtained	O
,	O
revise	O
the	O
posterior	O
distribution	O
to	O
be	O
then	O
used	O
as	O
the	O
prior	O
,	O
thus	O
the	O
inferences	O
continue	O
to	O
logically	O
contribute	O
to	O
one	O
another	O
based	O
on	O
Bayes	O
theorem	O
.	O
</s>
<s>
Markov	B-General_Concept
chain	I-General_Concept
Monte	I-General_Concept
Carlo	I-General_Concept
(	O
MCMC	O
)	O
is	O
a	O
flexible	O
procedure	O
designed	O
to	O
fit	O
a	O
variety	O
of	O
Bayesian	O
models	O
.	O
</s>
<s>
It	O
is	O
the	O
underlying	O
method	O
used	O
in	O
computational	B-Application
software	O
such	O
as	O
the	O
LaplacesDemon	B-Application
R	B-Language
Package	O
and	O
WinBUGS	B-Algorithm
.	O
</s>
