Jeongwen Chiang
September 1991
Marketing Science;Fall91, Vol. 10 Issue 4, p297
Academic Journal
Consumer's purchase decisions of whether to buy, what to buy and how much to buy are examined simultaneously. Based on a consumer utility maximization problem, an unobservable threshold price, about which a consumer pivots from nonpurchase to purchase, can be deduced. With any model specification, the interrelationships between purchase decisions can be explicitly derived. The model is applied to coffee purchasing data. In addition, by suppressing the nonpurchase options the model is compared with an alternative approach appearing in the marketing literature.


Related Articles

  • Application of a Modified Linear Learning Model of Buyer Behavior. LILIEN, GARY L. // Journal of Marketing Research (JMR);Aug1974, Vol. 11 Issue 3, p279 

    The performance of a stochastic model of individual buyer behavior relative to a set of gasoline diary panel data is explored. Use of the model for pricing decision making under a set of assumptions about competitive behavior in a market situation is discussed and illustrated through the use of...

  • The Impact of Brand Extension Introduction on Choice. Swaminathan, Vanitha; Fox, Richard J.; Reddy, Srinivas K. // Journal of Marketing;Oct2001, Vol. 65 Issue 4, p1 

    This article focuses on the impact of a new brand extension introduction on choice in a behavioral context using national household scanner data involving multiple brand extensions. Particularly, the authors investigate the reciprocal impact of trial of successful and unsuccessful brand...

  • L'implication et l'enfant: proposition d'une échelle de mesure. Derbaix, Christian; Pecheux, Claude // Recherche et Applications en Marketing (AFM c/o ESCP-EAP);1997, Vol. 12 Issue 1, p45 

    The goal of this article is to describe the building of a scale designed to measure the involvement construct for children from 8 to 11 years old. After having presented the classical definition of this construct as well as the measurement tools usually implemented, the authors — through...

  • Determining Segmentation in Sales Response Across Consumer Purchase Behaviors. Bucklin, Randolph E.; Gupta, Sunil; Siddarth, S. // Journal of Marketing Research (JMR);May98, Vol. 35 Issue 2, p189 

    The authors develop a joint estimation approach to segment households on the basis of their response to price and promotion in brand choice, purchase incidence, and purchase quantity decisions. The authors model brand choice (what to buy) by multinomial logit, incidence (whether to buy) by...

  • CONSUMERS' DECISION PLANS AND SUBSEQUENT CHOICE BEHAVIOR. Park, C. Whan; Hughes, Robert W.; Thukral, Vinod; Friedmann, Roberto // Journal of Marketing;Spring81, Vol. 45 Issue 2, p33 

    Three major factors are proposed as affecting a choice prediction method's (model's) immediate use by practitioners. These factors are predictive capability, input required, and interpretation task complexity. A decision plan net is developed as an alternative method to existing individual...

  • Product Performance and Consumer Satisfaction: A New Concept. Swan, John E.; Combs, Linda Jones // Journal of Marketing;Apr1976, Vol. 40 Issue 2, p25 

    The article reports on a study examining the influence of psychological and physical factors of product performance on customer satisfaction. The authors focus on the relationship between consumer expectations, product performance, and customer satisfaction. The authors illustrates patterns in...

  • Is Impulse Purchasing Really a Useful Concept for Marketing Decisions? Kollat, David T.; Willett, Ronald P. // Journal of Marketing;Jan1969, Vol. 33 Issue 1, p79 

    Impulse purchasing is an important aspect of customer in-store behavior as discussed in the previous article. The authors of this paper indicate that the concept, as presently employed, has limited usefulness as a basis for marketing decisions. They outline the problems marketers must confront...

  • Decision-Making Role and Information Processing. Mazis, Michael B. // Journal of Marketing Research (JMR);Nov72, Vol. 9 Issue 4, p447 

    motivational researchers sought to uncover unconscious motives for consumers' purchases, lately marketers have been more concerned with the rational methods people use to process marketing information. One application of the cognitive structure approach has been to use the relationships among...

  • Decomposition Model of the Total Store Purchase and Its Application. Songting Dong; Ping Zhao; Gao Wang; Liu, Raymond R. // Advances in Consumer Research;2008, Vol. 35, p669 

    To investigate customers' purchase behavior, researchers usually decompose the total store purchase (TSP) into the product of average single purchase and patronage frequency within a certain period of time. Previous study holds an assumption that single purchase payment (SPP) and inter-purchase...


Read the Article


Sign out of this library

Other Topics