NBD repeat purchase process and M/G/∞ queues

Charles S. Tapiero

doi:10.1016/S0925-5273(98)00254-0

NBD repeat purchase process and M/G/∞ queues

Charles S. Tapiero

Finance and Risk Engineering

Research output: Contribution to journal › Article › peer-review

Abstract

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.

Original language	English (US)
Pages (from-to)	141-145
Number of pages	5
Journal	International Journal of Production Economics
Volume	63
Issue number	2
DOIs	https://doi.org/10.1016/S0925-5273(98)00254-0
State	Published - Jan 15 2000

ASJC Scopus subject areas

General Business, Management and Accounting
Economics and Econometrics
Management Science and Operations Research
Industrial and Manufacturing Engineering

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Cite this

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NBD repeat purchase process and M/G/∞ queues

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