Modeling dynamic effects of promotion on interpurchase times
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||Dynamic duration model, Error-correction model, Time-varying covariates, Unobserved heterogeneity|
|Series||Econometric Institute Research Papers|
Fok, D, Paap, R, & Franses, Ph.H.B.F. (2002). Modeling dynamic effects of promotion on interpurchase times (No. EI 2002-37). Econometric Institute Research Papers. Retrieved from http://hdl.handle.net/1765/544