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Consumer Promotion And Purchase Timing: The Case Of Cheese

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  • Brian GOULD

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    Abstract

    The dynamics of cheese purchases is analyzed by estimating a series of econometric models of duration based on a 170 week household panel. Besides purchase quantity and price data, information with respect to coupon use and household demographic characteristics are used in a variety of models which build upon each other in terms of assumed distribution of interpurchase time, effect of previous purchases, role of demographic characteristics and effect of unobserved interpurchase time heterogeneity. Likelihood ratio tests clearly reject the null hypothesis that coupon use has no impact on cheese purchase timing.

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    Bibliographic Info

    Paper provided by University of Wisconsin Madison, AAE in its series Staff Papers with number 396.

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    Date of creation: May 1996
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    Handle: RePEc:wop:wiaesp:396

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    Postal: University of Wisconsin, Dept. of Agricultural and Applied Economics, 427 Lorch Street, Madison, WI 53706
    Phone: 608-262-8966
    Fax: 608-262-4376
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    Web page: http://www.aae.wisc.edu/
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    1. Dipak C. Jain & Naufel J. Vilcassim, 1991. "Investigating Household Purchase Timing Decisions: A Conditional Hazard Function Approach," Marketing Science, INFORMS, vol. 10(1), pages 1-23.
    2. Blaylock, James R. & Smallwood, David M., 1983. "Effects of Household Socioeconomic Features on Dairy Purchases," Technical Bulletins 157654, United States Department of Agriculture, Economic Research Service.
    3. Ronald W. Ward & William F. McDonald, 1986. "Effectiveness of generic milk advertising: A ten region study," Agribusiness, John Wiley & Sons, Ltd., vol. 2(1), pages 77-89.
    4. Heien, Dale & Wessells, Cathy Roheim, 1990. "Demand Systems Estimation with Microdata: A Censored Regression Approach," Journal of Business & Economic Statistics, American Statistical Association, vol. 8(3), pages 365-71, July.
    5. Scott A. Neslin & Caroline Henderson & John Quelch, 1985. "Consumer Promotions and the Acceleration of Product Purchases," Marketing Science, INFORMS, vol. 4(2), pages 147-165.
    6. Kaiser, Harry M. & Roberte, J. Carlos, 1995. "Impact ofGeneric Fluid Milk Advertising on Whole, Lowfat, and Skim Milk Demand," Research Bulletins 122996, Cornell University, Department of Applied Economics and Management.
    7. McDonald, James B & Butler, Richard J, 1987. "Some Generalized Mixture Distributions with an Application to Unemployment Duration," The Review of Economics and Statistics, MIT Press, vol. 69(2), pages 232-40, May.
    8. Kristiaan Helsen & David C. Schmittlein, 1993. "Analyzing Duration Times in Marketing: Evidence for the Effectiveness of Hazard Rate Models," Marketing Science, INFORMS, vol. 12(4), pages 395-414.
    9. Butler, Richard J & Worrall, John D, 1991. "Gamma Duration Models with Heterogeneity," The Review of Economics and Statistics, MIT Press, vol. 73(1), pages 161-66, February.
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