A SIMPLE MODEL FOR ANALYZING THE CUSTOMER RETENTION COMPARING RURAL AND URBAN STORE.

Many businesses follow the repeat operation of a particular customer with a same store in different discrete time point. Customer retention comprises the probability of customer that alive in particular store in different purchase occasion. Different purchase occasion with a particular store occur at regular time intervals. The main goal of this paper is to predict future purchase patterns for rural and urban customer that can be described by the structural characteristics. The discrete time beta geometric model allows to heterogeneity of each of rural and urban customer behavioral process. The model is applied in 194 household from urban and 196 household from rural. Each household visited three times once in every three months. The study reveals that customer retention of rural customer is more than the urban customer.