Article ID: | iaor20023328 |
Country: | Netherlands |
Volume: | 139 |
Issue: | 3 |
Start Page Number: | 682 |
End Page Number: | 687 |
Publication Date: | Jun 2002 |
Journal: | European Journal of Operational Research |
Authors: | Fader Peter S., Hardie Bruce G.S. |
Keywords: | stochastic processes |
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’. 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.