Modeling dynamic effects of promotion on interpurchase times
2002-10-09
Research Paper
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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.
Keywords
Automatically Extracted Terms
- effect
- model
- interpurchase
- interpurchase times
- household
- marketing
- purchase
- interpurchase time
- category
- hazard
- promotion
- parameter
- brand
- variable
- marketing instruments
- duration
- change
- price
- function
- specification
