purchase frequency

Dictionary of Marketing Terms for: purchase frequency
purchase frequency

number of occasions during a period of time that a consumer purchases a particular product or buys from a particular seller. Marketers can increase purchase frequency by promoting additional uses for the product such as a “not just for Thanksgiving” promotion for cranberry sauce. The higher the purchase frequency, the greater the opportunity for brand switching. Products with a high purchase frequency, such as coffee, require a sustained, year round advertising effort to avoid losing market share. Products with a low purchase frequency, like Christmas decorations, require seasonal advertising efforts. Consumable goods tend to have higher purchase frequencies than durable goods. Direct marketers try to identify customers with high purchase frequency rates because they are usually the marketer’s best prospects. An auto dealer uses knowledge of customer purchase frequency patterns to schedule mailings or phone calls to customers around the time of their next car purchase decision.

Copyright (c) by Barron's Educational Series. Reprinted by arrangement with the publisher of this site.