Never-buyers of consumer non-durables

Abstract

In this article the concept of never-buyers of consumer non-durables is discussed. The traditional Negative Binomial Distribution approach of Ehrenberg to the question is presented. Previously unpublished work carried out at the Graduate School of Business Administration, University of the Witwatersrand, is reviewed and hypotheses are put forward that the observed large zero cell in the purchase frequency distributions may be caused by the existence of a group of never-buyers of the product, or by the superimposition of at least two distinct buying populations, previously identified as brand-loyal and multibrand/brand-switching households. The results of the research aimed at testing the first hypothesis are presented here. Two carefully monitored data sets were modelled using zero-augmented Negative Binomial and Sichel distributions. The data were previously shown to exhibit the necessary mean households purchase/consumption stationarity. Individual brands in one data set (purchases of toilet soap) were shown to follow the predictions of the traditional theory - the proportion of non-buyers decreasing with time. In the second data set (consumption of packaged soup) the proportion of non-consumers of the brands fell towards zero as the length of the time period studied was increased, but at a rate faster than that predicted by the theory. The hypothesis of the existence of never-buyers/users of individual brands in these two product classes was therefore rejected.