Decomposition Model of the Total Store Purchase and Its Application

Songting Dong, Tsinghua University, China
Ping Zhao, Tsinghua University, China
Gao Wang, Tsinghua University, China
Raymond R. Liu, University of Massachusetts, Boston
The assumption that single purchase payment and inter-purchase time are independent is inconsistent with the real purchase behavior. Actual interdependency between the two aspects is concealed by the seemingly insignificant correlation coefficient. Hereby, the decomposition of the total store purchase based on the independence assumption could not present the real pattern accurately. Based on the observation and analysis of real consumer purchase behavior, the authors develop a decomposition model with the consideration of the interdependency between single purchase payment and inter-purchase time. Furthermore, the impact of marketing efforts is introduced into the model to see how these efforts affect single purchase payment and inter-purchase time, and therefore total store purchase. An empirical analysis shows the effectiveness of the model on analyzing customer store purchase.
[ to cite ]:
Songting Dong, Ping Zhao, Gao Wang, and Raymond R. Liu (2008) ,"Decomposition Model of the Total Store Purchase and Its Application", in NA - Advances in Consumer Research Volume 35, eds. Angela Y. Lee and Dilip Soman, Duluth, MN : Association for Consumer Research, Pages: 669-670.