This research extends a Pareto/NBD model of customer-base analysis using a hierarchical Bayesian (HB) framework to suit today's customized marketing. The proposed HB model presumes three tried and tested assumptions of Pareto/NBD models: (1) a Poisson purchase process, (2) a memoryless dropout...

Nonparametric density estimation using a kernel method is proposed to model consumer brand choice. Recent availability of large scanner panel data allows the use of nonparametric approach, which has few or at least fewer underlying assumptions and affords greater structural flexibility. By...