Probability Mixture Model

Marketing dictionary

Probability Mixture Model

A stochastic model for representing the behavior (e.g., brand choice or media viewing) of a set of individuals. This type of model is characterized by two components. First, a particular family of probabilistic models (such as a Poisson process) is selected to represent the behavior of any single individual (for example, the number of product purchases made by the individual). Second, there is an explicit realization that individuals differ from each other (heterogeneity). That is, a distribution is selected to represent the variation across individuals in the particular probabilistic model followed, within the family of models noted above. (For example, the Poisson purchase rate varies from individual to individual.) Probability mixture models have been used to predict brand choice, product purchase, and media viewing patterns over time. Source: AMA

See: Beta Binomial Model Brand Choice Models

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