You are not currently logged in.
Access JSTOR through your library or other institution:
Consumer Purchase Behavior in a Frequently Bought Product Category: Estimation Issues and Managerial Insights from a Hazard Function Model with Heterogeneity
Fusun Gonul and Kannan Srinivasan
Journal of the American Statistical Association
Vol. 88, No. 424 (Dec., 1993), pp. 1219-1227
Stable URL: http://www.jstor.org/stable/2291260
Page Count: 9
You can always find the topics here!Topics: Brands, Coupons, Marketing, Prices, Statistical models, Diapers, Mathematical independent variables, Statistical variance, Economic modeling, Econometrics
Were these topics helpful?See somethings inaccurate? Let us know!
Select the topics that are inaccurate.
Preview not available
We apply hazard function models to marketing data on household purchases of disposable diapers to calibrate repeat-purchase and brand-switching behaviors. In the model we allow for household-specific unobserved traits. Hazard function models with fixed-effects heterogeneity specification are computationally feasible. We directly compare the results of fixed- and random-effects heterogeneity specifications in the context of parametric and nonparametric duration-dependence functions. We find that a rigorous test fails to reject the random-effects specification in favor of the fixed-effects specification. The unimodal gamma distribution in the random-effects specification adequately captures unobserved heterogeneity.
Journal of the American Statistical Association © 1993 American Statistical Association