Access

You are not currently logged in.

Access your personal account or get JSTOR access through your library or other institution:

login

Log in to your personal account or through your institution.

Analyzing Duration Times in Marketing: Evidence for the Effectiveness of Hazard Rate Models

Kristiaan Helsen and David C. Schmittlein
Marketing Science
Vol. 12, No. 4 (Autumn, 1993), pp. 395-414
Published by: INFORMS
Stable URL: http://www.jstor.org/stable/183937
Page Count: 20
  • Download ($30.00)
  • Cite this Item
Analyzing Duration Times in Marketing: Evidence for the Effectiveness of Hazard Rate Models
Preview not available

Abstract

Some statistical methods developed recently in the biometrics and econometrics literature show great promise for improving the analysis of duration times in marketing. They incorporate the right censoring that is prevalent in duration times data, and can be used to make a wide variety of useful predictions. Both of these features make these methods preferable to the regression, logit, and discriminant analyses that marketers have typically used in analyzing durations. This paper is intended to fulfill three objectives. First, we demonstrate how decision situations that involve durations differ from other marketing phenomena. Second, we show how standard modeling approaches to handle duration times can break down because of the peculiarities inherent in durations. It has been suggested in recent marketing articles that an alternative to these conventional procedures, i.e., hazard rate models and proportional hazard regression, can more effectively handle duration type data. Third, to investigate whether these proposed benefits are in fact delivered for marketing durations data, we estimate and validate both conventional and hazard rate models for household interpurchase times of saltine crackers. Our findings indicate the superiority of proportional hazard regression methods vis-a-vis common procedures in terms of stability and face validity of the estimates and in predictive accuracy.

Page Thumbnails

  • Thumbnail: Page 
395
    395
  • Thumbnail: Page 
396
    396
  • Thumbnail: Page 
397
    397
  • Thumbnail: Page 
398
    398
  • Thumbnail: Page 
399
    399
  • Thumbnail: Page 
400
    400
  • Thumbnail: Page 
401
    401
  • Thumbnail: Page 
402
    402
  • Thumbnail: Page 
403
    403
  • Thumbnail: Page 
404
    404
  • Thumbnail: Page 
405
    405
  • Thumbnail: Page 
406
    406
  • Thumbnail: Page 
407
    407
  • Thumbnail: Page 
408
    408
  • Thumbnail: Page 
409
    409
  • Thumbnail: Page 
410
    410
  • Thumbnail: Page 
411
    411
  • Thumbnail: Page 
412
    412
  • Thumbnail: Page 
413
    413
  • Thumbnail: Page 
414
    414