The statistical relationship between product life cycle and repeat purchase behavior in convenience stores

TL;DR

This paper investigates how the Weibull distribution models product life cycles in convenience stores and explores how conditional market share influences these life cycles, revealing stronger correlations than unconditioned market share.

Contribution

It introduces the concept of conditional market share and demonstrates its stronger correlation with product life cycles compared to traditional market share measures.

Findings

Product life cycles follow a Weibull distribution.

Conditional market share is more strongly correlated with product life cycles.

Market share without conditions has a weaker correlation.

Abstract

The density function of product life cycles in convenience stores is found to follow the Weibull distribution. To clarify the parameters that determine these life cycles, we introduce the conditional market share-defined as the probability that a product is selected by customers only if it had been previously purchased-and the market share without any conditions. The product life cycle is more strongly correlated with the conditional market share of the product than with the latter type of market share.