TITLE

A TWO-STATE MODEL OF PURCHASE INCIDENCE AND BRAND CHOICE

AUTHOR(S)
Bucklin, Randolph E.; Lattin, James M.
PUB. DATE
January 1991
SOURCE
Marketing Science;Winter91, Vol. 10 Issue 1, p24
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
The authors develop and test a probabilistic model of purchase incidence and brand choice for frequently purchased consumer products. The model incorporates two ways of shopping in a category. Shoppers who have planned their purchasing ( made a decision before entering the store) do not process in-store information and show no response to point-of-purchase promotions. Consumers who have not planned their purchasing in a category (deciding at the point of purchase) may process in-store information and may be strongly influenced by promotions. The two modes of information processing are called decision states and are labelled planned and opportunistic, respectively. The two-state model is calibrated on IRI scanner purchase records for saltine crackers. The model yields a significantly better fit than a one-state nested logit model and provides new insights into the relationship between shopping behavior and consumer purchase response. (Brand Choice; Purchase Incidence; Nested Logit; Promotion; Shopping Behavior).
ACCESSION #
4477999

 

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