Identifying the Deal Prone Segment

Robert Blattberg, Thomas Buesing, Peter Peacock and Subrata Sen
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Robert Blattberg: University of Chicago, USA
Thomas Buesing: University of Chicago, USA
Peter Peacock: Wake Forest University, USA
Subrata Sen: University of Rochester, USA

Chapter 5 in Perspectives on Promotion and Database Marketing:The Collected Works of Robert C Blattberg, 2010, pp 79-87 from World Scientific Publishing Co. Pte. Ltd.

Abstract: AbstractA model of consumer buying behavior is used to identify household characteristics that should affect deal proneness. The model treats household purchasing and inventory decisions like those of a firm. In other words, the household's purchasing decisions are assumed to be based on such factors as transaction costs, holding costs, and stockout costs in addition to product price. Household characteristics then are related to these cost parameters to identify households that are likely to be deal prone. The predictions are tested empirically by use of panel data for five frequently purchased products. The empirical results indicate that deal prone households can be identified and that the key variables affecting deal proneness are household resource variables such as home ownership and automobile ownership.

Keywords: Quantitative Marketing; Tracker Model; Customer Level Data; Marketing-Mix Modeling (search for similar items in EconPapers)
JEL-codes: M31 (search for similar items in EconPapers)
Date: 2010
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