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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.

“Garbage in, garbage out” is a common expression that academics and practitioners use to emphasize that empirical analysis is only as good as the basis on which it relies. Although the importance of sound data and valid measures has long been acknowledged, it is nevertheless often problematic to follow required quality standards in concrete research situations. Potential sources of error are usually unknown, methods to ensure data quality are unavailable, and existing methods for scale development, index construction, data collection, and data analysis are insufficient or erroneously applied. This is especially true of international marketing research, which often makes great demands on the data and measures used, as well as on the research methodology applied. Against this background, this volume addresses issues pertaining to measurement and research methodology in an international marketing context. Thanks to the efforts of authors and reviewers, we are pleased to present nine articles that deal with cutting-edge topics such as formative measurement, response-bias in cross-cultural research, marketing efficiency measurement, and segmentation methods.