Consumer Heterogeneity Analysis Considering the Stage of Purchase Decision Making:Application of Hurdle Model to Consumer Price Response Analysis

Abstract

We propose a model that consider the stage of purchase decision making by dividing it into deciding whether to purchase and deciding how many products to purchase. For this purpose, we used a hurdle model that combines a binomial logit model and a Poisson regression model. The hurdle model is suitable for analyzing zero-inflated data. In our analysis, we incorporated marketing variables in each model and compared which stage the marketing variables affect more. We compare several models using WAIC and show that the proposed model is superior. Results from the proposed model can be used for sales promotion activities targeted at individual consumers.