The econometric analysis of a certain model for the above mentioned measures usually
involves a range of steps. The first step amounts to specifying a model given the available
data, the relevant explanatory variables, and the marketing problem at hand. Once the
model has been specified, one needs to estimate the parameters and their associated
confidence regions. Third, one usually considers the empirical validity of the model by
performing diagnostic tests on its adequacy, where one typically focuses on the properties
of the unexplained part of the model.