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A LOGIT‐MARKOVIAN MODEL OF CONSUMER PURCHASE BEHAVIOR BASED ON EXPLANATORY VARIABLES: EMPIRICAL EVALUATION AND IMPLICATIONS FOR DECISION MAKING *
Author(s) -
Zufryden Fred S.
Publication year - 1981
Publication title -
decision sciences
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.238
H-Index - 108
eISSN - 1540-5915
pISSN - 0011-7315
DOI - 10.1111/j.1540-5915.1981.tb00116.x
Subject(s) - logit , marketing , consumer behaviour , product (mathematics) , markov chain , econometrics , markov process , logistic regression , computer science , business , economics , mathematics , statistics , machine learning , geometry
This study describes and empirically evaluates an approach to modeling purchase behavior that integrates a Logit‐Markov‐based multivariate brand‐choice model structure with stochastic components. Using actual market data for a frequently purchased consumer product obtained from a consumer purchase panel survey, the paper highlights some marketing applications of the model. Given its general structure, the model can aid marketing managers in defining and evaluating target market segments and in assessing the impact of alternative marketing strategies.