Pj. Lenk et al., NONSTATIONARY CONDITIONAL TREND ANALYSIS - AN APPLICATION TO SCANNER PANEL-DATA, Journal of marketing research, 30(3), 1993, pp. 288-304
Planning and evaluating consumer promotions is facilitated by knowledg
e of the types of consumers who contribute to incremental sales. In pa
rticular, interest may focus on identifying the contributions of buyer
s segmented on the basis of their prior purchase history. When the dis
tribution of the number of purchase occasions in a base period can be
described by the negative binomial distribution (NBD), conditional tre
nd analysis (CTA) is a simple and effective approach for identifying t
he sources of incremental sales during a test (promotional) period. As
currently implemented, CTA assumes a stationary marketing environment
. The authors propose an extension of CTA that explicitly incorporates
varying marketing activities. They also show that the often observed
underprediction of purchases in the test period by nonbuyers in the ba
se period is a consequence of the skewness of the NBD and is not neces
sarily due to model misspecification. An illustration with scanner pan
el data is provided.