As suggested, I did the following:
select a.tblPurchasesID, a.CustomerID, a.DatePurchased as StartDate, b.DatePurchased as EndDate, Datediff(dd,b.DatePurchased,a.DatePurchased) as Interval,
case when Datediff(dd,b.DatePurchased,a.DatePurchased) > 179 THEN
2
ELSE 1
END AS Episode
from...