Abstract:
The present paper describes the devices adopted in order to construct the transition matrix which is going to serve as the model's input : they involve breaking down each purchasing sequence into pairs of elementary purchases. But this in turn created a new series of difficulties : the aggregating of unequal intervals between purchases, the impossibility of retracing an individual loyalty to a brand from repurchasing rates. The proposed solution consists of segmenting the market according to two dimensions that emerge from the Markov mechanism -purchasing intensity, and loyalty which also prove very instructive as far as marketing is concerned . The experiments carried out on two non-durable consumer product markets consisted of comparing predicted shares with actual shares over a period of three years, and enabled us to define the degree of reliability of the model.
This could also be of interest:
Research Papers
Brand switching models (French)
Catalogue: ESOMAR/WAPOR Congress 1969
Author: Raymond Delbes
 
June 15, 1969
Research Papers
An empirical approach to brand-switching
Catalogue: Seminar 1968: Operational Research In Marketing
Authors: Gerald J. Goodhardt, Andrew S. C. Ehrenberg
 
November 1, 1968
Research Papers
An empirical approach to brand-switching (Discussion)
Catalogue: Seminar 1968: Operational Research In Marketing
Author: Andrew S. C. Ehrenberg
 
November 1, 1968
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