Modeling Purchases as Repeated Events
We put forward a statistical model for interpurchase times that incorporates all current and past information available for all purchases as time runs along the calendar time scale. It delivers forecasts for the number of purchases in the next period, as well as for the timing of subsequent and consecutive purchases. Purchase occasions are viewed as a counting process that counts the recurrent purchases for each house-hold as they evolve over time. We illustrate our model for yogurt purchases and highlight its managerial implications.
|Keywords||Cox model, counting process, purchase timing, repeated events, unobserved heterogeneity|
|Persistent URL||dx.doi.org/10.1198/073500106000000242, hdl.handle.net/1765/13214|
|Series||ERIM Top-Core Articles|
|Journal||Journal of Business and Economic Statistics|
Bijwaard, G.E, Franses, Ph.H.B.F, & Paap, R. (2006). Modeling Purchases as Repeated Events. Journal of Business and Economic Statistics, 24(4), 487–502. doi:10.1198/073500106000000242