A note on an integrated model of customer buying behavior

Abstract

We propose a simple benchmark model for the integrated stochastic model of buying behavior developed in the article “Counting your customers: Compounding customer's in-store decisions, interpurchase time and repurchasing behavior” [Eur. J. Oper. Res. 127(1) (2000) 109–119]. Re-examining the previously analyzed data covering the purchasing of tea, we find that the new benchmark model – which involves merely three parameters and can be estimated entirely within a standard spreadsheet environment – outperforms the original integrated model and provides clearer, more complete answers to the managerial questions posed at the outset of the earlier paper.