Dirichlet Model: Patterns of Buyer Behaviour

The patterns of consumer behaviour using the Dirichlet Model:

This marketing model is about habitual near steady state consumer behaviour. It is not dynamic. In dynamic situations, it does provide a benchmark.

Purchasing of Individual Brands
  • Brands have very different no. of buyers, in line with their market shares
  • Average Purchase Frequencies are much similar among brands
  • Double Jeopardy (DJ) effect - Smaller brands not only have fewer buyers but those who buy them also buy less often.
  • Average amount bought per purchase occasion varies little from brand to brand
  • Most buyers of a brand buy it very infrequently
  • Most consumers of a specific brand buy it only once a year or so

Purchasing competitive Brands

  • Most consumers tend to buy more than one brand over a period of time
  • Few consumers of a brand are 100% loyal to that one brand over a long series of time period (even less 100% loyalty for smaller brands - DJ effect again)
  • 100% buyers usually do not buy the brand heavily
  • A brand's customer buy other brands in total far more often in a period like a year than they buy the brand itself
  • Which other brands and brand's customers also buy is mostly much the same from brand to brand
  • The dominant factor for the purchase duplications between brands is the penetration of each brand, in a near constant proportion (Duplication of Purchase Law)
  • Most markets are largely unsegmented for more or less substitutable brands
  • Brand shares are much the same for the lighter and heavier category buyers

Each individual consumer habitually buys from a small repertoire of brands, with steady long run propensities or probabilities of buying.

Extracted from Patterns of Buyer Behaviour: Regularities, Models and Extensions (1995) by Uncles, M, Ehrenberg, A & Hammond, K

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