Cookies?
Library Header Image
LSE Research Online LSE Library Services

Estimating household purchase rates for consumer nondurable goods

Jain, Dipak C. and Vilcassim, Naufel J. (1994) Estimating household purchase rates for consumer nondurable goods. Applied Stochastic Models and Data Analysis, 10 (1). pp. 15-26. ISSN 1526-4025

Full text not available from this repository.
Identification Number: 10.1002/asm.3150100103

Abstract

Understanding the purchase rates of households for frequently purchased packaged goods is an important element in developing effective marketing strategies. Previous researchers have attempted to estimate these rates by assuming that the time between purchases is a random variable that follows some common parametric probability distribution such as the exponential or Weibull distribution. Recent research has shown that for many frequently purchased packaged goods, the interpurchase times cannot be adequately described by these commonly used probability distributions. In this study we demonstrate how household purchase rates can be estimated in a robust manner using a generalized semiparametric approach that obviates the need for specifying a parametric form for the distribution of interpurchase times. The motivation being that often there is no theory of household purchase behaviour that specifies a priori the probability distribution underlying the interpurchase times. Our empirical results indicate that, for the data analysed, the household purchase rates exhibit a regular pattern that cannot be recovered by probability distributions often used in previous research. Further, marketing actions taken by sellers do indeed influence household purchase behaviour.

Item Type: Article
Official URL: http://onlinelibrary.wiley.com/journal/10.1002/(IS...
Additional Information: © 1994 John Wiley & Sons, Ltd
Subjects: H Social Sciences > HF Commerce
Sets: Departments > Management
Date Deposited: 01 Mar 2017 10:45
Last Modified: 05 Apr 2017 08:16
URI: http://eprints.lse.ac.uk/id/eprint/69479

Actions (login required)

View Item View Item