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Cited by 248

The DOI matches its Crossref record; 27 of the 27 references it cites were found in a registry or an index.

Customer Base Analysis: An Industrial Purchase Process Application

Schmittlein, David C., Peterson, Robert A.·1994·Marketing Science
DOI 10.1287/mksc.13.1.41
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Abstract

Customer base analysis is concerned with using the observed past purchase behavior of customers to understand their current and likely future purchase patterns. More specifically, as developed in Schmittlein et al. (1987), customer base analysis uses data on the frequency, timing, and dollar value of each customer's past purchases to infer • the number of customers currently active, • how that number has changed over time, • which individual customers are most likely still active, • how much longer each is likely to remain an active customer, and • how many purchases can be expected from each during any future time period of interest. In this paper we empirically validate the model proposed by Schmittlein et al. In doing so, we provide one of the few applications of stochastic models to industrial purchase processes and industrial marketing decisions. Besides showing that the model does capture key aspects of the purchase process, we also present a more effective parameter estimation method and some results regarding sampling properties of the parameter estimates. Finally, we extend the model to explicitly incorporate dollar volume of past purchases. Our results indicate that this kind of customer base analysis can be both effective in predicting purchase patterns and in generating insights into how key customer groups differ. The link of both these benefits to industrial marketing decision making is also discussed.

Overview

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Crossref · 10.1287/mksc.13.1.41

Cites

27 of 27 references verified0 citation errors · 0 not checkable

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Citations

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Metadata

Authors
Schmittlein, D. C., & Peterson, R. A.
Affiliations
  • University of Pennsylvania
  • University of Texas at Austin
Venue
Marketing Science
Publisher
Institute for Operations Research and the Management Sciences (INFORMS)
Published
1994-02
Volume
13
Issue
1
Pages
41-67
ISSN
  • 0732-2399
  • 1526-548X
DOI
10.1287/mksc.13.1.41
Cited by
248
References
27
Language
en

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Data sources

Bibliographic data: Semantic Scholar, OpenAlex, Crossref.

Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).

Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.