A Probablistic Market Model of Purchase Timing and Brand Selection
Jerome Herniter
Additional contact information
Jerome Herniter: Boston University
Management Science, 1971, vol. 18, issue 4-Part-II, P102-P113
Abstract:
A stochastic model of consumer purchase behavior for frequently purchased, low cost products is developed. Both brand selection and purchase timing are incorporated in the model; a first-order Markov process is used to describe brand selection, and Erlang density functions are used to describe time between purchases. The market's behavior is obtained by describing the individual consumer's behavior and then aggregating over consumers. The model's predictions of various aggregate purchase timing statistics and repeat purchase sequences are empirically verified.
Date: 1971
References: Add references at CitEc
Citations: View citations in EconPapers (11)
Downloads: (external link)
http://dx.doi.org/10.1287/mnsc.18.4.P102 (application/pdf)
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:inm:ormnsc:v:18:y:1971:i:4-part-ii:p:p102-p113
Access Statistics for this article
More articles in Management Science from INFORMS Contact information at EDIRC.
Bibliographic data for series maintained by Chris Asher ().