2022 Volume 65 Issue 4 Pages 216-238
This study elucidates the degree of the influence of marketing measures and product loyalty (i.e.,convenience, shopping, and specialty goods) on department store customers' purchase amounts using a model formed by a Bayesian hierarchical regression model framework. In addition, we use a Tobit model to infer the latent characteristics of zero purchase amounts and estimate customers' inertial purchasing behaviors by modeling loyalty variables. Direct mail (DM) sent to each customer is used as the marketing measure. To build a different purchase amount mechanism for each customer, we incorporate a variable selection model. The results of the empirical analysis provide information about strategies department stores can adopt to increase customers' purchase amounts.
