Past nonstore patronage as a covariate

Abstract

The results of research that examines the relationship between demographic characteristics and nonstore patronage have not been consistent. This article explains the rationale behind a methodologic procedure that enables a reassessment of the efficacy of demographic traits as predictors of nonstore patronage. It is demonstrated that the procedure can more accurately assess the relationship between demographic traits and nonstore patronage proclivities by treating the overwhelming, concomitant impact of past nonstore patronage patterns as a covariate. The benefits of this procedure include 1) more accurate demographic profiles of current customers; 2) an alternate means of identifying new target markets; and 3) avoidance of the inbreeding effect in mailing-list development.