The relationship between purchase regularity and propensity to accelerate

Abstract

Identifying random and regular-buying household segments and relating them to demographic and shopping characteristics has been the focus of many marketing studies. Missing from the marketing literature, however, is a study that relates purchase regularity to marketing mix sensitivities. Such study could provide substantive implications since it would explore a practical dimension of a segmentation scheme based on purchase regularity. In this article, we investigate the relationship between purchase regularity and propensity to accelerate through the use of a mixture Weibull model of purchase timing. Applying this perspective to purchase timing data on four product categories (ketchup, sugar, bathroom tissue, margarine), we show that in the frequently purchased categories of bathroom tissue and margarine, random buyers do not exhibit any propensity to accelerate while regular buyers do. In the occasionally purchased categories of ketchup and sugar on the other hand, random buyers exhibit at least as much propensity to accelerate their purchases as regular buyers do. Our rationale for these results is based on information-theoretic arguments suggesting that propensity to accelerate depends on the frequency at which a product category is purchased.