the model in terms of predicting the data; the lower
its value, the better is the model. Instead of detailing
the coefficients, we discuss the two main derived
expressions. (We detail the formulae in Appendix 1.)
First, we express the purchase rate in terms of
weekly transactions. Second, we compute an average
inactivity date. We obtain the results in Table II.
The quality of the estimation based on the BIC is
very specific: It is poor for the traditional transactions
(especially consumers who only buy traditional coffee),
which likely reflects their high degree of heterogeneity.
Considering the various types of traditional
coffees available as one unique product is clearly a limit
for the accuracy of our analysis. The purchase rate
expected represents the average number of coffee
transactions per week and per customer. A transaction
might include several packages (i.e., on average, 1.3
packages per transaction). Similarly, the inactivity date
expected is the average ‘‘lifespan’’ of a customer,
which reflects when the household stops purchasing
coffee or FT coffee for any reason.
the model in terms of predicting the data; the lowerits value, the better is the model. Instead of detailingthe coefficients, we discuss the two main derivedexpressions. (We detail the formulae in Appendix 1.)First, we express the purchase rate in terms ofweekly transactions. Second, we compute an averageinactivity date. We obtain the results in Table II.The quality of the estimation based on the BIC isvery specific: It is poor for the traditional transactions(especially consumers who only buy traditional coffee),which likely reflects their high degree of heterogeneity.Considering the various types of traditionalcoffees available as one unique product is clearly a limitfor the accuracy of our analysis. The purchase rateexpected represents the average number of coffeetransactions per week and per customer. A transactionmight include several packages (i.e., on average, 1.3packages per transaction). Similarly, the inactivity dateexpected is the average ‘‘lifespan’’ of a customer,which reflects when the household stops purchasingcoffee or FT coffee for any reason.
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