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Modeling dynamic effects of promotion on interpurchase times

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  • Fok, D.
  • Paap, R.
  • Franses, Ph.H.B.F.

Abstract

In this paper we put forward a duration model to analyze the dynamic effects of marketing-mix variables on interpurchase times. We extend the accelerated failure-time model with an autoregressive structure. An important feature of our model is that it allows for different long-run and short-run effects of marketing-mix variables on interpurchase times. As marketing efforts usually change during the spells, we explicitly deal with time-varying covariates. Our empirical analysis of purchases in three different categories reveals that, for some segments of households, the short-run effects of marketing-mix variables are significantly different from the long-run effects.

Suggested Citation

  • Fok, D. & Paap, R. & Franses, Ph.H.B.F., 2002. "Modeling dynamic effects of promotion on interpurchase times," Econometric Institute Research Papers EI 2002-37, Erasmus University Rotterdam, Erasmus School of Economics (ESE), Econometric Institute.
    • Handle: RePEc:ems:eureir:544
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    Cited by:

    1. Epstein, Leonardo D. & Inostroza-Quezada, Ignacio E. & Goodstein, Ronald C. & Choi, S. Chan, 2021. "Dynamic effects of store promotions on purchase conversion: Expanding technology applications with innovative analytics," Journal of Business Research, Elsevier, vol. 128(C), pages 279-289.
    2. Igari, Ryosuke & Hoshino, Takahiro, 2018. "A Bayesian data combination approach for repeated durations under unobserved missing indicators: Application to interpurchase-timing in marketing," Computational Statistics & Data Analysis, Elsevier, vol. 126(C), pages 150-166.
    3. Andrew Ching & Tülin Erdem & Michael Keane, 2009. "The price consideration model of brand choice," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 24(3), pages 393-420, April.

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