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Stochastic Panel-Data Models of Urban Shopping Behaviour: 4. Incorporating Independent Variables into the NBD and Dirichlet Models

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  • N Wrigley
  • R Dunn

Abstract

In this paper the authors describe the way in which the NBD and Dirichlet models of consumer behaviour may be extended to include independent or exogenous variables. Such methods allow the predictions obtained from these models to be disaggregated, that is, to be made conditional on the values of the exogenous variables. Empirical examples are presented of repeat buying of a branded good and at an individual store (for the NBD model), and of multistore purchasing (for the Dirichlet model).

Suggested Citation

  • N Wrigley & R Dunn, 1985. "Stochastic Panel-Data Models of Urban Shopping Behaviour: 4. Incorporating Independent Variables into the NBD and Dirichlet Models," Environment and Planning A, , vol. 17(3), pages 319-331, March.
    • Handle: RePEc:sae:envira:v:17:y:1985:i:3:p:319-331
    DOI: 10.1068/a170319
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    References listed on IDEAS

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    1. R. Dunn & S. Reader & N. Wrigley, 1983. "An Investigation of the Assumptions of the Nbd Model as Applied to Purchasing at Individual Stores," Journal of the Royal Statistical Society Series C, Royal Statistical Society, vol. 32(3), pages 249-259, November.
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    Cited by:

    1. Ehrenberg, Andrew S. C. & Uncles, Mark D. & Goodhardt, Gerald J., 2004. "Understanding brand performance measures: using Dirichlet benchmarks," Journal of Business Research, Elsevier, vol. 57(12), pages 1307-1325, December.
    2. J-C Thill, 1995. "Modeling Store Choices with Cross-Sectional and Pooled Cross-Sectional Data: A Comparison," Environment and Planning A, , vol. 27(8), pages 1303-1315, August.
    3. P T L Popkowski Leszczyc & H J P Timmermans, 1996. "An Unconditional Competing Risk Hazard Model of Consumer Store-Choice Dynamics," Environment and Planning A, , vol. 28(2), pages 357-368, February.
    4. S Reader & F R McNeill, 1999. "Hazard-Rate Modelling of Store-Switching Behaviour," Environment and Planning A, , vol. 31(8), pages 1353-1370, August.
    5. S Reader, 1993. "Unobserved Heterogeneity in Dynamic Discrete Choice Models," Environment and Planning A, , vol. 25(4), pages 495-519, April.

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