Click on the PDF link for the complete article.
ABSTRACT
The Dirichlet is a well-established theoretical model that describes and predicts patterns of purchasing behavior in stationary markets. This paper uses data from a highly nonstationary market to demonstrate that the Dirichlet norms also provide a baseline to interpret change in purchasing behavior—in particular, change wrought by sustained promotional activity. The empirical analysis of industrial purchasing data describes how one supplier more than doubled its share of the market. This share increase was achieved by, first, securing a higher share of the category purchases made by heavy buyers (increasing purchase frequency) before adopting a more typical growth strategy of attracting more buyers (increasing penetration).
- © Copyright 2012 The ARF. All rights reserved.
ARF MEMBERS
If you are a member of the Advertising Research Foundation, you can access the content by logging in here
Log In
Pay Per Article - You may access this article (from the computer you are currently using) for 30 days for US$20.00
Regain Access - You can regain access to a recent Pay per Article purchase if your access period has not yet expired.