Predicting home-appliance acquisition sequences: Markov/Markov for Discrimination and survival analysis for modeling sequential information in NPTB models
A. Prinzie () and
Dirk Van den Poel ()
Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium from Ghent University, Faculty of Economics and Business Administration
The acquisition process of consumer durables is a ‘sequence’ of purchase events. Priority-pattern research exploits this ‘sequential order’ to describe a prototypical acquisition order for durables. This paper adds a predictive perspective to increase managerial relevance. Besides order information, the acquisition sequence also reveals precise timing between purchase events (‘sequential duration’) as examined in the literature on durable replacement and time-to-first acquisition. This paper bridges the gap between priority-pattern research and research on duration between durable acquisitions to improve the prediction of the product group the customer might acquire his next durable from, i.e. Next-Product-to-Buy (NPTB) model. We evaluate four multinomial-choice models incorporating: 1) general covariates, 2) general covariates and sequential order, 3) general covariates and sequential duration, and 4) general covariates, sequential order and duration. The results favor the model including general covariates and duration information (3). The high predictive value of sequentialduration information emphasizes the predictive power of duration as compared to order information.
Keywords: cross-sell; sequence analysis; choice modeling; durable goods; analytical CRM (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dcm and nep-ecm
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (9) Track citations by RSS feed
Downloads: (external link)
Our link check indicates that this URL is bad, the error code is: 401 Unauthorized
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: http://EconPapers.repec.org/RePEc:rug:rugwps:07/442
Access Statistics for this paper
More papers in Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium from Ghent University, Faculty of Economics and Business Administration Contact information at EDIRC.
Series data maintained by Nathalie Verhaeghe ().