We report on the temporal stability of the parameters of the NBD-Dirichlet model, a well-known stochastic theory of buying behaviour. This model is widely used and recommended as a stationary market benchmark against which the dynamic effects of marketing interventions can be assessed. Yet there...

Purpose – The purchase distribution of consumer packaged goods has been extensively modelled by the negative binomial distribution (NBD). As the characteristics of packaged goods differ from those of subscription services, the latter may be a boundary condition for NBD. In this study, the...

This research examines long-term loyalty change in a wide variety of FMCG categories in the UK and the USA, over time periods ranging from six to thirteen years. The study uses three loyalty measures: polarization index (φ), average brand share of requirements (SCR), and average repertoire...

It is a common belief that users of a brand in one category are more likely to purchase brand extensions than non-users of the brand. This study examines whether extensions actually do facilitate purchase of the brand in a second category. We analyze one year of household purchasing data for...

Purpose: The study investigates the long-term erosion of repeat-purchase loyalty among consumers who purchase brands in a one-year base period. Design/methodology/approach: The study uses a five-year consumer panel of continuous reporters. We identify brand buyers in a base year, then calculate...

This research investigates changes in brand loyalty as households pass from one stage of the household life cycle to another. Analysing 45 brands in three consumer product categories in the UK, we find that the changes follow a U shape pattern. Brand loyalty declines sharply as households shift...

Purpose – This study responds to the call of Fader and Hardie for more research on buyer behaviour toward stock keeping units (SKU). This paper aims to examine whether different SKU‐based product variants appeal to buyers with different demographic characteristics....