IDEAS home Printed from https://ideas.repec.org/a/inm/ormnsc/v50y2004i8p1120-1133.html
   My bibliography  Save this article

Identifying Innovators for the Cross-Selling of New Products

Author

Listed:
  • Wagner A. Kamakura

    (Fuqua School of Business, Duke University, One Towerview Road, Durham, North Carolina 27708)

  • Bruce S. Kossar

    (@Futures L.L.C., 409 Executive Drive, Langhorne, Pennsylvania 18940)

  • Michel Wedel

    (University of Michigan Business School, 701 Tappan Street, Ann Arbor, Michigan 48109)

Abstract

With recent advances in information technology, most companies are amassing extensive customer databases. The wealth of information in these databases can be useful in identifying those customers most likely to purchase a new product and in predicting when this adoption may take place. This can assist database marketers in determining when individuals should be targeted for the promotion of a new product, which may increase the efficiency of manufacturing and distribution, and assure a faster return on investments. For this purpose, we propose a model that considers the timing of past purchases across multiple product categories and produces estimates of each customer's propensity of ever purchasing in a particular product category and of the timing of their purchases. The model is designed to help managers identify the best prospects for a new offer in one of multiple categories based on generalizations obtained from past offers. The proposed model also provides projections of aggregate penetration for new brands within the database, based on sample estimates.

Suggested Citation

  • Wagner A. Kamakura & Bruce S. Kossar & Michel Wedel, 2004. "Identifying Innovators for the Cross-Selling of New Products," Management Science, INFORMS, vol. 50(8), pages 1120-1133, August.
    • Handle: RePEc:inm:ormnsc:v:50:y:2004:i:8:p:1120-1133
    DOI: 10.1287/mnsc.1040.0256
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/mnsc.1040.0256
    Download Restriction: no
    File URL: https://libkey.io/10.1287/mnsc.1040.0256?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Schmidt, Peter & Witte, Ann Dryden, 1989. "Predicting criminal recidivism using 'split population' survival time models," Journal of Econometrics, Elsevier, vol. 40(1), pages 141-159, January.
    2. David C. Schmittlein & Robert A. Peterson, 1994. "Customer Base Analysis: An Industrial Purchase Process Application," Marketing Science, INFORMS, vol. 13(1), pages 41-67.
    3. Hamparsum Bozdogan, 1987. "Model selection and Akaike's Information Criterion (AIC): The general theory and its analytical extensions," Psychometrika, Springer;The Psychometric Society, vol. 52(3), pages 345-370, September.
    4. Gary L. Lilien & Ambar G. Rao & Shlomo Kalish, 1981. "Bayesian Estimation and Control of Detailing Effort in a Repeat Purchase Diffusion Environment," Management Science, INFORMS, vol. 27(5), pages 493-506, May.
    5. Uday S. Karmarkar, 1987. "Lot Sizes, Lead Times and In-Process Inventories," Management Science, INFORMS, vol. 33(3), pages 409-418, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Guillaume Ducarme & Jean-François Hamel & Stéphanie Brun & Hugo Madar & Benjamin Merlot & Loïc Sentilhes, 2017. "Sexual function and postpartum depression 6 months after attempted operative vaginal delivery according to fetal head station: A prospective population-based cohort study," PLOS ONE, Public Library of Science, vol. 12(6), pages 1-17, June.
    2. Polo, Yolanda & Sese, F. Javier & Verhoef, Peter C., 2011. "The Effect of Pricing and Advertising on Customer Retention in a Liberalizing Market," Journal of Interactive Marketing, Elsevier, vol. 25(4), pages 201-214.
    3. Daniela Andreini & Diego Rinallo & Giuseppe Pedeliento & Mara Bergamaschi, 2017. "Brands and Religion in the Secularized Marketplace and Workplace: Insights from the Case of an Italian Hospital Renamed After a Roman Catholic Pope," Journal of Business Ethics, Springer, vol. 141(3), pages 529-550, March.
    4. Benjamin Monnery, 2015. "The determinants of recidivism among ex-prisoners: a survival analysis on French data," European Journal of Law and Economics, Springer, vol. 39(1), pages 37-56, February.
    5. Christopher J. W. Zorn, 1998. "An Analytic and Empirical Examination of Zero-Inflated and Hurdle Poisson Specifications," Sociological Methods & Research, , vol. 26(3), pages 368-400, February.
    6. S. A. Abu Bakar & Saralees Nadarajah & Z. A. Absl Kamarul Adzhar, 2018. "Loss modeling using Burr mixtures," Empirical Economics, Springer, vol. 54(4), pages 1503-1516, June.
    7. Jaewoong Yun, 2023. "Strategies for Improving the Sustainability of Fare-Free Policy for the Elderly through Preferences by Travel Modes," Sustainability, MDPI, vol. 15(20), pages 1-14, October.
    8. Shah, Purvi, 2020. "Managing customer reactions to brand deletion in B2B and B2C contexts," Journal of Retailing and Consumer Services, Elsevier, vol. 57(C).
    9. Caroline Krafft, 2020. "Why is fertility on the rise in Egypt? The role of women’s employment opportunities," Journal of Population Economics, Springer;European Society for Population Economics, vol. 33(4), pages 1173-1218, October.
    10. Malerba, Martino E. & Connolly, Sean R. & Heimann, Kirsten, 2015. "An experimentally validated nitrate–ammonium–phytoplankton model including effects of starvation length and ammonium inhibition on nitrate uptake," Ecological Modelling, Elsevier, vol. 317(C), pages 30-40.
    11. Göhlmann, Silja, 2007. "The Determinants of Smoking Initiation - Empirical Evidence for Germany," Ruhr Economic Papers 27, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    12. Friederike Paetz, 2016. "Persönlichkeitsmerkmale als Segmentierungsvariablen: Eine empirische Studie [Personality traits for market segmentation: An empirical study]," Schmalenbach Journal of Business Research, Springer, vol. 68(3), pages 279-306, August.
    13. YongSeog Kim & W. Nick Street & Gary J. Russell & Filippo Menczer, 2005. "Customer Targeting: A Neural Network Approach Guided by Genetic Algorithms," Management Science, INFORMS, vol. 51(2), pages 264-276, February.
    14. Rosbergen, Edward & Wedel, Michel & Pieters, Rik, 1997. "Analyzing visual attention tot repeated print advertising using scanpath theory," Research Report 97B32, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
    15. Nalan Basturk & Richard Paap & Dick van Dijk, 2008. "Structural Differences in Economic Growth," Tinbergen Institute Discussion Papers 08-085/4, Tinbergen Institute.
    16. Jerath, Kinshuk & Fader, Peter S. & Hardie, Bruce G.S., 2016. "Customer-base analysis using repeated cross-sectional summary (RCSS) data," European Journal of Operational Research, Elsevier, vol. 249(1), pages 340-350.
    17. Golob, Thomas F. & Regan, A C, 2002. "Trucking Industry Preferences for Driver Traveler Information Using Wireless Internet-enabled Devices," University of California Transportation Center, Working Papers qt40q8h6sf, University of California Transportation Center.
    18. Golob, Thomas F. & Regan, A C, 2003. "Traffic Congestion and Trucking Managers' Use of Automated Routing and Scheduling," University of California Transportation Center, Working Papers qt74z234n4, University of California Transportation Center.
    19. Debabrata Dey & Atanu Lahiri & Guoying Zhang, 2015. "Optimal Policies for Security Patch Management," INFORMS Journal on Computing, INFORMS, vol. 27(3), pages 462-477, August.
    20. Naiara Escalante Mateos & Eider Goñi Palacios & Arantza Fernández-Zabala & Iratxe Antonio-Agirre, 2020. "Internal Structure, Reliability and Invariance across Gender Using the Multidimensional School Climate Scale PACE-33," IJERPH, MDPI, vol. 17(13), pages 1-24, July.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:ormnsc:v:50:y:2004:i:8:p:1120-1133. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.