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This paper discusses the formal analysis of the structure underlying distance-based representations of consumer similarity judgments. Four models common in the marketing and psychological literature are examined—Euclidean and city-block spaces and ultrametric and additive trees. The analysis...
Rotating indifference curves are used to induce an income effect that favors superior brands at the expense of inferior brands in a discrete choice model. When calibrated on scanner panel data, the model yields an objective measure of brand quality which is related to the rate of rotation. The...
Two concepts of brand loyalty are defined, “inertial” brand loyalty resulting from time lags in awareness, and “cost-based” brand loyalty resulting from intertemporal utility effects. Their market level implications are formally derived in a continuous time model. It is found that...
Consumers are different in their purchase rates and it is important to determine this heterogeneity. If a consumer's purchases follow a Poisson process (hence exponential interpurchase time), and purchase rates are distributed gamma across consumers, then a simple measure of heterogeneity is the...
Relationships between buying and selling organizations in business markets are varied and complex. One important relationship is procurement, or the type of alliance that buyers form with sellers to fulfill their purchasing needs. Multiple sourcing is often proposed to prevent a variety of...
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