IDEAS home Printed from https://ideas.repec.org/h/spr/sprchp/978-3-8349-3722-3_1.html
   My bibliography  Save this book chapter

Implementing the Pareto/NBD Model: A User-Friendly Approach

In: Quantitative Marketing and Marketing Management

Author

Listed:
  • Albert C. Bemmaor

    (ESSEC Business School)

  • Nicolas Glady

    (ESSEC Business School)

  • Daniel Hoppe

    (The Boston Consulting Group)

Abstract

The paper addresses an issue that has been qualified as “challenging” in the literature, i.e., estimating the parameters of the well-known Pareto/NBD model. Previous researchers have circumvented th e apparent difficulty by bringing slight variations to the model. These changes turn out to be less innocuous than initially thought. The study proposes an alternative method to compute the parameters of the Pareto/NBD model with maximum likelihood. The method relies on the evaluation of a single one-dimensional integral. It is illustrated with two data sets that have been used in the literature. The procedure leads to the same parameter estimates as the previously published ones. It can be implemented in a spreadsheet.

Suggested Citation

  • Albert C. Bemmaor & Nicolas Glady & Daniel Hoppe, 2012. "Implementing the Pareto/NBD Model: A User-Friendly Approach," Springer Books, in: Adamantios Diamantopoulos & Wolfgang Fritz & Lutz Hildebrandt (ed.), Quantitative Marketing and Marketing Management, edition 127, chapter 1, pages 39-49, Springer.
    • Handle: RePEc:spr:sprchp:978-3-8349-3722-3_1
    DOI: 10.1007/978-3-8349-3722-3_1
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    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:spr:sprchp:978-3-8349-3722-3_1. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.