A decomposition of repeat buying

Abstract

The authors decompose repeat buying for frequently purchased nondurables. The results are very similar for two categories each over a different city and time period. A factor analysis of 18 measures of repeat buying obtains four principal factors that explain 79–85% of the variance: Preference, Inertia, Coupon Proneness and Impulse Buying. A cluster analysis of factors on these dimensions yields four segments, with distinct behavioral characteristics.