Identifying the Deal Prone Segment

A model of consumer buying behavior is used to identify household characteristics that should affect deal proneness. The model treats household purchasing and inventory decisions like those of a firm. In other words, the household's purchasing decisions are assumed to be based on such factors as transaction costs, holding costs, and stockout costs in addition to product price. Household characteristics then are related to these cost parameters to identify households that are likely to be deal prone. The predictions are tested empirically by use of panel data for five frequently purchased products. The empirical results indicate that deal prone households can be identified and that the key variables affecting deal proneness are household resource variables such as home ownership and automobile ownership.

[1]  P. Chiappori,et al.  A Theory of the Allocation of Time " , 2014 .

[2]  A. Tynan,et al.  Market Segmentation , 2018, Entrepreneurial Management Theory and Practice.

[3]  Paul E. Green,et al.  On the Analysis of Qualitative Data in Marketing Research , 1977 .

[4]  Paul E. Green,et al.  On the Analysis of Qualitative Data in Marketing Research , 1977 .

[5]  Subrata K. Sen,et al.  Market Segments and Stochastic Brand Choice Models , 1976 .

[6]  Stephen E. Fienberg,et al.  Discrete Multivariate Analysis: Theory and Practice , 1976 .

[7]  Peter Wright.  Consumer Choice Strategies: Simplifying Vs. Optimizing , 1975 .

[8]  Peter Wright,et al.  Consumer Choice Strategies: Simplifying Vs. Optimizing: , 1975 .

[9]  Stephen E. Fienberg,et al.  Discrete Multivariate Analysis: Theory and Practice , 1976 .

[10]  Subrata K. Sen,et al.  Market Segmentation Using Models of Multidimensional Purchasing Behavior , 1974 .

[11]  Subrata K. Sen,et al.  Market Segmentation Using Models of Multidimensional Purchasing Behavior , 1974 .

[12]  Gary S. Becker,et al.  ON THE NEW THEORY OF CONSUMER BEHAVIOR , 1973 .

[13]  H. Kunreuther.  Why the Poor May Pay More for Food: Theoretical and Empirical Evidence , 1972 .

[14]  David B. Montgomery,et al.  Consumer Characteristics Associated with Dealing: An Empirical Example , 1971 .

[15]  G. Becker,et al.  A Theory of the Allocation of Time , 1965 .

[16]  Frederick E. Webster,et al.  The “Deal-Prone” Consumer , 1965 .

[17]  F. Downton,et al.  Introduction to Mathematical Statistics , 1959 .