Customer behavior dependent diffusion process & optimal model selection using distance based approach

The existence of any company depends on its present and future customers. For the progress of any business organization, understanding customer's mindset is crucial. Many authors have proposed mathematical models to analyze and measure the sales for organizations. This study works with a mathematical methodology to provide different aspect of customer's perception before and after they make their final purchase. Here we have incorporated the concept of repeat purchase and balking in our diffusion modeling framework. Besides studying customer's decision for re-buying the product or they leaving it without buying, we have proposed many models depending on the rate of product adoption. Selecting an optimal diffusion model to be used in a particular case has been an interesting area for researchers in the domain of innovation diffusion modeling. In line with this, we have deployed Distance Based Approach (DBA) to seek the proposed models and select an optimal model according to the given circumstances. Several goodness of fit measures have been considered for applying DBA. The validation of the proposed model is done on the real life data set.