Joint modeling of effects of customer tier program on customer purchase duration and purchase amount

Nowadays, many supermarkets implement a customer tier program to increase their profits because it is expected raise customers' willingness purchase by setting thresholds. However, designing an appropriate difficult each customer's heterogeneous behavior capture. Therefore, we simultaneously modeled frequency and amount through marked point process approach while considering effects characteristics. The results clarified that the points pressure effect was particularly strong among customers who originally visited store infrequently had not attained threshold set up in times past. In addition, found three-tier superior two-tier with respect operating income supermarkets.