An Analysis of Mechanism for Customers' Purchase Amount and Number of Visits in Department Store

Abstract

The purpose of this study is to reveal how marketing affects customers' purchase amount and number of visits in Japanese department stores. We model purchase amounts by using a hierarchical Bayes regression model and number of visits by using a hierarchical Bayes Poisson regression model. Furthermore, we estimate the latent factor behind price as the purchase amount per month with a Type-1 Tobit model and the structural heterogeneity of each customer with a model for variable selection. Direct mail and events are used as marketing measures. The analytical results reveal marketing measures that raise customers' final purchase amounts.

Reliability of Credit Scores in Loan Management in a Developing Country

“…Individual loans are always a serious problem for the sale of expensive products. In Japan, if the number of visits by customers increases, the purchase amount also can be increased [40]. This is because income is relatively stable in Japan.…”