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.