The negative binomial distribution repeat purchase process and M/G/∞ queues

This paper considers the repeat purchase process as an M/G/∞ queue. Special cases are derived including the NBD (Negative Binomial Distribution) model which is shown to be robust under a broad set of assumptions regarding the process of repeat purchase. Applications are considered. In particular, we consider issues of truthfulness in advertising (called here advertising signal reliability) regarding the product life distribution, etc. and its effects on repeat purchase. Using this application we contrast problems of ‘quantity’ and ‘quality’ of advertising.