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A Two-State Model of Purchase Incidence and Brand Choice


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  • Randolph E. Bucklin

    (University of California, Los Angeles)

  • James M. Lattin

    (Stanford University)

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    The authors develop and test a probabilistic model of purchase incidence and brand choice for frequently purchased consumer products. The model incorporates two ways of shopping in a category. Shoppers who have planned their purchasing (made a decision before entering the store) do not process in-store information and show no response to point-of-purchase promotions. Consumers who have not planned their purchasing in a category (deciding at the point of purchase) may process in-store information and may be strongly influenced by promotions. The two modes of information processing are called decision states and are labelled , respectively. The two-state model is calibrated on IRI scanner purchase records for saltine crackers. The model yields a significantly better fit than a one-state nested logit model and provides new insights into the relationship between shopping behavior and consumer purchase response.

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    Bibliographic Info

    Article provided by INFORMS in its journal Marketing Science.

    Volume (Year): 10 (1991)
    Issue (Month): 1 ()
    Pages: 24-39

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    Handle: RePEc:inm:ormksc:v:10:y:1991:i:1:p:24-39

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    Keywords: brand choice; purchase incidence; nested logit; promotion; shopping behavior;


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