Regularities in purchase behavior
Explore regularities in purchase behavior in stationary markets, focusing on single brand purchases and patterns within product categories. Discover how mathematical models based on consumer panel data inform sales norms and brand performance evaluation.
Regularities in purchase behavior
E N D
Presentation Transcript
Regularities in purchase behavior
Outline • Stationary markets • The purchase of a single brand • Patterns of purchase in the entire product category
Stationary markets • established markets tend to be stable for medium-length analysis periods; • use of mathematical models to mimic actual purchase behavior; • these models are based on consumer or household panel data; • they can be used to provide sales norms and judge the performance of a brand;
The purchase of a single brand the sales equation: m = b w where: m → mean population purchase rate b → penetration w → purchase frequency
Patterns of purchase in the entire product category • how do penetrations and purchase frequencies vary with market share? • what is double jeopardy? • how important are sole buyers of a brand? • when consumers buy more than one brand, what determines which other brands they buy?
