A Note on an Integrated Model of Customer Buying Behavior

Peter S. Fader
Bruce G.S. Hardie

European Journal of Operational Research
Volume 139, Number 3
16 June 2002


We propose a simple benchmark model for the integrated stochastic model of buying behavior developed in the article "Counting Your Customers: Compounding Customer's In-store Decisions, Interpurchase Time and Repurchasing behavior'' (EJOR, 127, 109-119). Re-examining the previously analyzed data covering the purchasing of tea, we find that the new benchmark model -- which involves merely three parameters and can be estimated entirely within a standard spreadsheet environment -- outperforms the original integrated model and provides clearer, more complete answers to the managerial questions posed at the outset of the earlier paper.