We examine the indirect impact of price deals, which occurs through the formation of expected future prices, on households' purchase decisions. Two competing learning processes of households' formation of expected future deals that lead to opposite predictions are proposed. Under a...

The literature on grocery store loyalty views a consumer as possessing store loyalty toward a particular store for her or his overall shopping needs. In this study, we examine store loyalty as a category-specific trait, i.e., a consumer could be loyal to Store A in category 1, but loyal to Store...

Assessing the profitability of a customer is very important to a firm from the standpoint of planning retention (and even acquisition) initiatives. Customer profitability is also the defining concept of customer relationship management (CRM). In this paper we propose a framework to quantify the...

In this article, the authors offer a methodology to decompose the effects of price promotions into brand switching, stockpiling, and change in consumption by explicitly allowing for consumer heterogeneity in brand preferences and consumption needs. They develop a dynamic structural model of a...