McCabe, James, Stern, Philip and Dacko, Scott G. (2012) The power of before and after : how the Dirichlet can analyze the sales impact of a promotional activity. Journal of Advertising Research, 52 (2). pp. 214-224. ISSN 1740-1909.

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Abstract

The Dirichlet is a well-established theoretical model that describes and predicts patterns of purchasing behavior in stationary markets. This paper uses data from a highly nonstationary market to demonstrate that the Dirichlet norms also provide a baseline to interpret change in purchasing behavior—in particular, change wrought by sustained promotional activity. The empirical analysis of industrial purchasing data describes how one supplier more than doubled its share of the market. This share increase was achieved by, first, securing a higher share of the category purchases made by heavy buyers (increasing purchase frequency) before adopting a more typical growth strategy of attracting more buyers (increasing penetration).

Item Type:	Journal Article
Subjects:	H Social Sciences > HF Commerce
Divisions:	Faculty of Social Sciences > Warwick Business School > Marketing & Strategic Management Faculty of Social Sciences > Warwick Business School
Journal or Publication Title:	Journal of Advertising Research
Publisher:	World Advertising Research Center
ISSN:	1740-1909
Official Date:	2012
Dates:	Date Event 2012 Published
Volume:	52
Number:	2
Page Range:	pp. 214-224
Status:	Not Peer Reviewed
Publication Status:	Published
Access rights to Published version:	Restricted or Subscription Access

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