Part 2. MM4XL Tools > 2. Analytical Tools > Business Formulas > mmREBUY, Repeat Purchase Rate

Business Formulas

mmREBUY, Repeat Purchase Rate

Category: Market Research & Statistics

The Repeat Purchase Rate model estimates the probability that a customer re-buys a brand after the first trial use. This model is based on the ASSESSOR model developed by Management Decision systems in 1978.

Business analysis formulas for Excel. Marketing tool for professionals

Where:

S = repeat purchase rate
R(k,t) = Probability that a consumer who last purchased any of the established brands k will switch to the new brand t on the next buying occasion
R(t,t) = Probability that a consumer who last purchased the new brand will repurchase it again on the next buying occasion

Note: The probability of repurchase can be estimated using the MM4XL tool Brand Switch Analyst.

Syntax

mmREBUY(Switch_To_New, Rebuy_New)

Switch_To_New Percent of customers switching to the new brand
Rebuy_New Percent of customers re-buying the new brand after the first purchase

Example

See example file Business Formulas.xls, sheet mmREBUY.

Business analysis formulas for Excel. Marketing tool for professionals

Related functions
  • mmBEP
  • mmBEPR
  • mmBUYRATE
  • mmREBUYS
  • mmBASS
  • mmBDI
  • mmCDI
  • mmMOI
  • mmPRESS
Related MM4XL software tools
  • Brand Switch Analyst
  • Risk Analyst
  • Decision Tree
  • Sample Manager
  • Proportion Analyst
  • Forecast Manager
Source
Yoram J. Wind, 1982, Product Policy: Concepts, Methods, and Strategy
A. J. Silk and G. L. Urban, 1978, Pre-Test Market Evaluation of New Packaged Goods: A Model and Measurement Methodology, Journal of Marketing Research 15 (May)
Lifetime license:

Price: euro

Vote this tool
We proudly serve
Your vote
vote1 vote2 vote3 vote4 vote5
Email:
Gender:
M
F
Age:
Position:
Department:
Comment: