Showing posts with the label market share

Predicting Purchasing Behavior Patterns in Stationary Markets

Predicting patterns of consumer behavior can be difficult. To date no one has developed a perfect model as each has its own particular short-comings. The Dirichlet model is well-established that both describes and predicts purchasing behavior patterns in stationary markets. The researchers McCabe, et. al. (2012) focuses on the success of the model for companies trying to gain market share.  It should be first understood that all purchasing is based in habits of purchase. Customers follow certain patterns based upon how they associate the information among competing brands. Marketing nudges individuals to make one choice over another to expand their repertoire of purchasing behaviors. Strong marketing creates memories that become associated with products and services.  Structural changes in behavior can occur when changes force choices beyond day-to-day decisions. Even though industrial marketing and purchasing is long-term and stable it can change. These changes usually are