| Abstract: | This study describes and empirically evaluates an approach to modeling purchase behavior that integrates a Logit-Markov-based multivariate brand-choice model structure with stochastic components. Using actual market data for a frequently purchased consumer product obtained from a consumer purchase panel survey, the paper highlights some marketing applications of the model. Given its general structure, the model can aid marketing managers in defining and evaluating target market segments and in assessing the impact of alternative marketing strategies. |
