This paper considers the repeat purchase process as an M/G/∞ queue. Special cases are derive including the NBD (Negative Binomial Distribution) model which is shown to be robust under a broad set of assumptions regarding the process of repeat purchase. Applications are considered. In particular, we consider issues of truthfulness in advertising (called here advertising signal reliability) regarding the product life distribution, etc. and its effects on repeat purchase. Using this application we contrast problems of `quantity' and `quality' of advertising.
ASJC Scopus subject areas
- Business, Management and Accounting(all)
- Economics and Econometrics
- Management Science and Operations Research
- Industrial and Manufacturing Engineering