How persistent are duplication of purchase partitions

Journal article


Anesbury, Z., Bennett, D. and Kennedy, R. (2021). How persistent are duplication of purchase partitions. Journal of Consumer Behaviour: an international research review. https://doi.org/10.1002/cb.1985
AuthorsAnesbury, Z., Bennett, D. and Kennedy, R.
Abstract

Brands share more of their customers with bigger competitors and fewer with smaller ones. However, there are occasional deviations to this predictable Duplication of Pur- chase (DoP) pattern. When two or more brands share excess customers because of functional or nonfunctional differences—it is called a partition. While past research using the NBD-Dirichlet model demonstrates partitions in annual or shorter data, there is no empirical evidence for partition persistency over the longer term, although some other NBD-Dirichlet deviations are known to persist over time. Examining expected partitions in 10 consumer goods categories in the United Kingdom, the authors show partitions overwhelmingly persist over 3 years. The findings contribute support to Dirichlet theory, especially on market stability, boundary conditions, and provide practical implications for portfolio management.

KeywordsDuplication of Purchase, Brands, Partitions, Portfolios
Year2021
JournalJournal of Consumer Behaviour: an international research review
PublisherWiley
ISSN1472-0817
Digital Object Identifier (DOI)https://doi.org/10.1002/cb.1985
Publication dates
Print04 Sep 2021
Publication process dates
Accepted10 Aug 2021
Deposited07 Sep 2021
Accepted author manuscript
License
File Access Level
Open
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