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Technical Note—Aggregating Individual Purchases to the Household Level

Author

Listed:
  • Barbara E. Kahn

    (University of California at Los Angeles)

  • Donald G. Morrison

    (Columbia University)

  • Gordon P. Wright

    (Purdue University)

Abstract

Household level panel data are the input for many types of marketing studies. An interesting, but until now unaddressed, question is what is the effect of aggregating individual members' purchases to the household level. Under “standard” assumptions the answer is unambiguous: the household brand switching pattern looks more zero order than the typical individual family member's behavior. When the standard assumptions are relaxed the overall spirit of the results do not change. These conclusions give comfort to those who use brand switching data to partition product categories. Those looking for variety-seeking behavior from household data are given some cause for concern—as well as reasons for reinterpreting previous studies.

Suggested Citation

  • Barbara E. Kahn & Donald G. Morrison & Gordon P. Wright, 1986. "Technical Note—Aggregating Individual Purchases to the Household Level," Marketing Science, INFORMS, vol. 5(3), pages 260-268.
    • Handle: RePEc:inm:ormksc:v:5:y:1986:i:3:p:260-268
    DOI: 10.1287/mksc.5.3.260
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    Cited by:

    1. Meade, Nigel & Islam, Towhidul, 2010. "Using copulas to model repeat purchase behaviour - An exploratory analysis via a case study," European Journal of Operational Research, Elsevier, vol. 200(3), pages 908-917, February.
    2. Min Ding & Jehoshua Eliashberg, 2008. "A Dynamic Competitive Forecasting Model Incorporating Dyadic Decision Making," Management Science, INFORMS, vol. 54(4), pages 820-834, April.
    3. Wu, Couchen & Chen, Hsiu-Li, 2000. "Counting your customers: Compounding customer's in-store decisions, interpurchase time and repurchasing behavior," European Journal of Operational Research, Elsevier, vol. 127(1), pages 109-119, November.
    4. Sanjay K. Dhar & Jagmohan S. Raju, 1998. "The Effects of Cross-Ruff Coupons on Sales and Profits," Management Science, INFORMS, vol. 44(11-Part-1), pages 1501-1516, November.
    5. Martijn G. de Jong & Donald R. Lehmann & Oded Netzer, 2012. "State-Dependence Effects in Surveys," Marketing Science, INFORMS, vol. 31(5), pages 838-854, September.

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