TITLE

ACCOUNTING FOR HETEROGENEITY AND NONSTATIONARITY IN A CROSS-SECTIONAL MODEL OF CONSUMER PURCHASE BEHAVIOR

AUTHOR(S)
Fader, Peter S.; Lattin, James M.
PUB. DATE
June 1993
SOURCE
Marketing Science;Summer93, Vol. 12 Issue 3, p304
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
When calibrating a brand choice model cross-sectionally, a measure of brand loyalty is often introduced into the utility function to account for differences in utility across households and over time. One of the most widely used measures of brand loyalty, proposed by Guadagni and Little (1983), is an exponential smoothing model of past choice behavior by the household. In this study, we argue that the exponential smoothing model of brand loyalty cannot properly distinguish between sources of variation in utility due to heterogeneity (across households) and sources of variation due to nonstationarity,(within household over time). We introduce a new measure of brand loyalty, derived from a nonstationary Dirichlet-multinomial choice model, in which heterogeneity and nonstationarity are handled distinctly.
ACCESSION #
4470475

 

Related Articles

  • Minimized Regret is Sufficient to Model the Asymmetrically Dominated Decoy Effect. Sachley, David // Marketing Bulletin;May2005, Vol. 16, p1 

    The ‘decoy effect’ is a well known phenomenon in marketing, where consumer behaviour defies logical decision making. In this paper a simple mathematical model is developed to show that such consumer dynamics may be replicated with minimal prior assumptions. Although results may be...

  • An Investigation Into the Determinants of Customer Satisfaction. Churchill Jr., Gilbert A.; Surprenant, Carol // Journal of Marketing Research (JMR);Nov82, Vol. 19 Issue 4, p491 

    The authors investigate whether it is necessary to include disconfirmation as an intervening variable affecting satisfaction as is commonly argued, or whether the effect of disconfirmation is adequately captured by expectation and perceived performance. Further, they model the process for two...

  • mark ritson. ritson, mark // Marketing Week;1/17/2013, p78 

    The author discusses brand loyalty, arguing that despite the impact of economic recessions on consumer preferences and consumer behavior, brand loyalty is still an important goal for marketers. According to the author, marketers should avoid price promotions, recognize the impact of outside...

  • BELIEFS IN QUALITY DIFFERENCES AND BRAND CHOICE. Obermiller, Carl; Wheatley, John J. // Advances in Consumer Research;1985, Vol. 12 Issue 1, p75 

    In a laboratory setting and in a field study subjects who believed or were led to believe that there were large quality differences among brands in several product categories tended to use price as a product quality cue. Conversely, those who did not believe or were led riot to believe in...

  • Brand Literacy: Consumers' Sense-Making of Brand Management. Bengtsson, Anders; Fırat, A. Fuat // Advances in Consumer Research;2006, Vol. 33 Issue 1, p375 

    In cultures where brands play important roles for consumers' identity construction, people learn how to relate to and use brands 'knowingly.' Through the process of learning to consume brands in ways that are recognizable by the consumer culture, consumers develop brand literacy. Based on...

  • Does Your Brand Deserve Loyalty? Morrison, Ron // Sales & Service Excellence Essentials;Aug2007, Vol. 7 Issue 8, p5 

    The article focuses on the basic principles to build a brand that deserves loyalty. A company should create a vision and missions that are measurable, actionable, and observable by any person that interacts with its brand. A company should consider making an apology and offering refunds for...

  • Pint of View. LAGER, MARSHALL // CRM Magazine;Feb2016, Vol. 20 Issue 2, p44 

    The author observes that the love customers have for a brand is superficial. He states that real love of a brand comes from the employees of the company that provides it. He emphasizes that a company that loves its brands infuses that love into every employee. He explains that it is a deep love...

  • From Giotto to Botticelli: The Artistic Patronage of the Humiliati in Florence. BRASHER, SALLY M. // American Historical Review;Apr2017, Vol. 122 Issue 2, p569 

    No abstract available.

  • Testing Cognitive Models Through Computer-Controlled Experiments. Hughes, G. David; Guerrero, Jose L. // Journal of Marketing Research (JMR);Aug1971, Vol. 8 Issue 3, p291 

    A computer-controlled experiment was used to test balance, reinforcement, and congruity models and to develop a new model to predict changes in buyers' subjective probabilities after receiving new information. Subjective probability and attitude models were tested to determine their utility in...

Share

Read the Article

Courtesy of VIRGINIA BEACH PUBLIC LIBRARY AND SYSTEM

Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics