IDEAS home Printed from https://ideas.repec.org/a/inm/ormnsc/v50y2004i8p1120-1133.html
   My bibliography  Save this article

Identifying Innovators for the Cross-Selling of New Products

Author

Listed:
  • Wagner A. Kamakura

    (Fuqua School of Business, Duke University, One Towerview Road, Durham, North Carolina 27708)

  • Bruce S. Kossar

    (@Futures L.L.C., 409 Executive Drive, Langhorne, Pennsylvania 18940)

  • Michel Wedel

    (University of Michigan Business School, 701 Tappan Street, Ann Arbor, Michigan 48109)

Abstract

With recent advances in information technology, most companies are amassing extensive customer databases. The wealth of information in these databases can be useful in identifying those customers most likely to purchase a new product and in predicting when this adoption may take place. This can assist database marketers in determining when individuals should be targeted for the promotion of a new product, which may increase the efficiency of manufacturing and distribution, and assure a faster return on investments. For this purpose, we propose a model that considers the timing of past purchases across multiple product categories and produces estimates of each customer's propensity of ever purchasing in a particular product category and of the timing of their purchases. The model is designed to help managers identify the best prospects for a new offer in one of multiple categories based on generalizations obtained from past offers. The proposed model also provides projections of aggregate penetration for new brands within the database, based on sample estimates.

Suggested Citation

  • Wagner A. Kamakura & Bruce S. Kossar & Michel Wedel, 2004. "Identifying Innovators for the Cross-Selling of New Products," Management Science, INFORMS, vol. 50(8), pages 1120-1133, August.
    • Handle: RePEc:inm:ormnsc:v:50:y:2004:i:8:p:1120-1133
    DOI: 10.1287/mnsc.1040.0256
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/mnsc.1040.0256
    Download Restriction: no
    File URL: https://libkey.io/10.1287/mnsc.1040.0256?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Schmidt, Peter & Witte, Ann Dryden, 1989. "Predicting criminal recidivism using 'split population' survival time models," Journal of Econometrics, Elsevier, vol. 40(1), pages 141-159, January.
    2. Hamparsum Bozdogan, 1987. "Model selection and Akaike's Information Criterion (AIC): The general theory and its analytical extensions," Psychometrika, Springer;The Psychometric Society, vol. 52(3), pages 345-370, September.
    3. Gary L. Lilien & Ambar G. Rao & Shlomo Kalish, 1981. "Bayesian Estimation and Control of Detailing Effort in a Repeat Purchase Diffusion Environment," Management Science, INFORMS, vol. 27(5), pages 493-506, May.
    4. Uday S. Karmarkar, 1987. "Lot Sizes, Lead Times and In-Process Inventories," Management Science, INFORMS, vol. 33(3), pages 409-418, March.
    5. David C. Schmittlein & Robert A. Peterson, 1994. "Customer Base Analysis: An Industrial Purchase Process Application," Marketing Science, INFORMS, vol. 13(1), pages 41-67.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ioana Gutu & Daniela Tatiana Agheorghiesei & Alexandru Tugui, 2023. "Assessment of a Workforce Sustainability Tool through Leadership and Digitalization," IJERPH, MDPI, vol. 20(2), pages 1-30, January.
    2. Polo, Yolanda & Sese, F. Javier & Verhoef, Peter C., 2011. "The Effect of Pricing and Advertising on Customer Retention in a Liberalizing Market," Journal of Interactive Marketing, Elsevier, vol. 25(4), pages 201-214.
    3. Daniela Andreini & Diego Rinallo & Giuseppe Pedeliento & Mara Bergamaschi, 2017. "Brands and Religion in the Secularized Marketplace and Workplace: Insights from the Case of an Italian Hospital Renamed After a Roman Catholic Pope," Journal of Business Ethics, Springer, vol. 141(3), pages 529-550, March.
    4. Benjamin Monnery, 2015. "The determinants of recidivism among ex-prisoners: a survival analysis on French data," European Journal of Law and Economics, Springer, vol. 39(1), pages 37-56, February.
    5. Christopher J. W. Zorn, 1998. "An Analytic and Empirical Examination of Zero-Inflated and Hurdle Poisson Specifications," Sociological Methods & Research, , vol. 26(3), pages 368-400, February.
    6. S. A. Abu Bakar & Saralees Nadarajah & Z. A. Absl Kamarul Adzhar, 2018. "Loss modeling using Burr mixtures," Empirical Economics, Springer, vol. 54(4), pages 1503-1516, June.
    7. Byrd, T. A. & Marshall, T. E., 1997. "Relating information technology investment to organizational performance: a causal model analysis," Omega, Elsevier, vol. 25(1), pages 43-56, February.
    8. Ida, Takanori & Goto, Rei & Takahashi, Yuko & Nishimura, Shuzo, 2011. "Can economic-psychological parameters predict successful smoking cessation?," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 40(3), pages 285-295, May.
    9. Herbert Hoijtink & Meinte Vollema, 2003. "Contemporary Extensions of the Rasch Model," Quality & Quantity: International Journal of Methodology, Springer, vol. 37(3), pages 263-276, August.
    10. Jaewoong Yun, 2023. "Strategies for Improving the Sustainability of Fare-Free Policy for the Elderly through Preferences by Travel Modes," Sustainability, MDPI, vol. 15(20), pages 1-14, October.
    11. Shah, Purvi, 2020. "Managing customer reactions to brand deletion in B2B and B2C contexts," Journal of Retailing and Consumer Services, Elsevier, vol. 57(C).
    12. Caroline Krafft, 2020. "Why is fertility on the rise in Egypt? The role of women’s employment opportunities," Journal of Population Economics, Springer;European Society for Population Economics, vol. 33(4), pages 1173-1218, October.
    13. Malerba, Martino E. & Connolly, Sean R. & Heimann, Kirsten, 2015. "An experimentally validated nitrate–ammonium–phytoplankton model including effects of starvation length and ammonium inhibition on nitrate uptake," Ecological Modelling, Elsevier, vol. 317(C), pages 30-40.
    14. Gerald R. Wheeler & Rodney V. Hissong, 1988. "A Survival Time Analysis of Criminal Sanctions for Misdemeanor Offenders," Evaluation Review, , vol. 12(5), pages 510-527, October.
    15. Bandopadhyaya, Arindam & Jaggia, Sanjiv, 2001. "An analysis of second time around bankruptcies using a split-population duration model," Journal of Empirical Finance, Elsevier, vol. 8(2), pages 201-218, May.
    16. Aline Riboli Marasca & Maurício Scopel Hoffmann & Anelise Reis Gaya & Denise Ruschel Bandeira, 2021. "Subjective Well-Being and Psychopathology Symptoms: Mental Health Profiles and their Relations with Academic Achievement in Brazilian Children," Child Indicators Research, Springer;The International Society of Child Indicators (ISCI), vol. 14(3), pages 1121-1137, June.
    17. Göhlmann, Silja, 2007. "The Determinants of Smoking Initiation - Empirical Evidence for Germany," Ruhr Economic Papers 27, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    18. Cole, Rebel A. & Gunther, Jeffery W., 1995. "Separating the likelihood and timing of bank failure," Journal of Banking & Finance, Elsevier, vol. 19(6), pages 1073-1089, September.
    19. Friederike Paetz, 2016. "Persönlichkeitsmerkmale als Segmentierungsvariablen: Eine empirische Studie [Personality traits for market segmentation: An empirical study]," Schmalenbach Journal of Business Research, Springer, vol. 68(3), pages 279-306, August.
    20. YongSeog Kim & W. Nick Street & Gary J. Russell & Filippo Menczer, 2005. "Customer Targeting: A Neural Network Approach Guided by Genetic Algorithms," Management Science, INFORMS, vol. 51(2), pages 264-276, February.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:ormnsc:v:50:y:2004:i:8:p:1120-1133. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.