Abstract
Purpose – This chapter explores the basic characteristics of stochastic frontier estimation, discusses advantages of the method that make it conducive to research in international marketing, and provides an application to demonstrate its use. Potential applications in international marketing research are also discussed. Methodology – Stochastic Frontier Estimation. Findings – Stochastic frontier estimation models, prevalent in other fields, are very limited in the international marketing literature. Many potential opportunities exist for its use in the context of international marketing. Originality/value of paper – The intent of this chapter is to show that stochastic frontier estimation is a potentially valuable tool for international marketing research. We show this by demonstrating the use of the tool and by providing examples of potential research studies.
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