Study of retail sector by purchase incidence model

The purchase behaviour of consumer on fast moving consumer goods has been studied in terms of purchase during a fixed time frame. In the latest study, Allenby, Leone and Jen (1999) have used Generalized Gamma distribution in place of Gamma distribution. While results have been mathematically more elegant, application has become a bit more complicated. At the same time Yuge (1999) has analyzed this problem from the view point of competition between the store and the consumer. In all the cases the emphasis has been on studying the number of possible purchases, by eliminating the heterogeneity of the population by averaging out the ‘regional effects’. A quantity of interest is the penetration of a product for a given time period. The problem arises when the data is incomplete because of missing observation in some periods. To overcome this, a set of Poisson model has been found suitable and simple.