Title: A modeling framework for analyzing retail store durations
Authors: Dekimpe, Marnik ×
Morrison, DG #
Issue Date: 1991
Series Title: Journal of Retailing vol:67 issue:1 (Spring) pages:68-92
Abstract: A rich data set on 4,600 franchised retail stores belonging to a single chain is analyzed. Some of these stores are still in operation, so basic statistics, such as the mean or median duration of the sample, cannot be computed directly. A stochastic mixture model is developed that allows these important characteristics to be estimated. The models are applied to the complete data set and to subgroups of stores formed on the basis of the country of origin and the time of coming into the market. It is shown that not all store segments should be approached with a similar kind of strategy to reduce their respective failure rates. It is illustrated that groups of stores with similar initial failure probabilities may have widely differing median duration times or quitting patterns at the individual store level, findings that could not have been obtained using simple descriptive statistics. The formal modeling framework allows one to evaluate the appropriateness of alternative policy measures to reduce the failure rates of a group of stores and to make more meaningful comparisons across different groups
ISSN: 0022-4359
Publication status: published
KU Leuven publication type: IT
Appears in Collections:Research Centre for Marketing and Consumer Science, Leuven
× corresponding author
# (joint) last author

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