Discriminating between behaviour using market data from panels

Considerable research exists on stochastic models of switching behaviour that uses sequences of individual-level purchase data.

Discriminating between behaviour using market data from panels

Hsiu-Yuan Tsao

National Chung Hsing University

Leyland Pitt

Simon Fraser University

Colin Campbell

Kent State University


Research focusing on the forms of variety-seeking and reinforcement behaviour has received much attention within the literature (Jeuland 1979; Givon 1984; Kahn 1986; Chintagunta 1998). While a characteristic of reinforcement behaviour is an increase in repeat purchase probability, variety-seeking behaviour is typically opposite in nature (Kahn . 1986). This research focuses on the influence of reinforcement and variety seeking on promotional responses and marketing variables (Kahn & Raju 1991; Feinberg 1992; Seetharaman & Chintagunta 1998; Trivedi & Morgan 2003) and on behavioural segmentation based on variety seeking and reinforcement (Givon 1985; Yim & Kannan 1999). The findings present implications for managers facing decisions to spend on promotional and loyalty programmes targeted at different behavioural segments such as variety-seeking consumers or loyal consumers in need of reinforcement. A related issue is whether promotional activities should continue towards variety seekers and whether a pulsing strategy is beneficial for the reinforcement behaviour segment (Givon 1984). Trivedi and Morgan (2003) suggest that, within a limited range of intrinsic brand favourability, high variety seekers are less sensitive to the preference order of considered brands. Further, Yim and Kannan (1999) reveal that loyalty-building strategies depend very much on the composition of a brand’s hard-core loyalty base, on reinforcing this base and on marketing mix factors or product attributes.

WARC subscribers can sign in to keep reading

Not a subscriber?

WARC helps you to plan, create and deliver more effective marketing

  • Prove your case and back-up your idea

  • Get expert guidance on strategic challenges

  • Tackle current and emerging marketing themes

WARC consistently delivers valuable insights that help to make me look like an expert in front of my colleagues and clients.

Dasha Boryso
Strategy Partner, Fetch

You’re in good company

We work with 80% of Forbes' most valuable brands* and 80% of the world's top top-of-the-class agencies.

* Top 10 brands