A Simultaneous Approach to the Whether, What and How Much to Buy Questions
Consumer's purchase decisions of whether to buy, what to buy and how much to buy are examined simultaneously. Based on a consumer utility maximization problem, an unobservable threshold price, about which a consumer pivots from nonpurchase to purchase, can be deduced. With any model specification, the interrelationships between purchase decisions can be explicitly derived. The model is applied to coffee purchasing data. In addition, by suppressing the nonpurchase options the model is compared with an alternative approach appearing in the marketing literature.
Volume (Year): 10 (1991)
Issue (Month): 4 ()
|Contact details of provider:|| Postal: 7240 Parkway Drive, Suite 300, Hanover, MD 21076 USA|
Web page: http://www.informs.org/
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:inm:ormksc:v:10:y:1991:i:4:p:297-315. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mirko Janc)
If references are entirely missing, you can add them using this form.