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Modeling Joint Purchases with a Multivariate MNL Approach

Author

Listed:
  • Yasemin Boztuğ
  • Lutz Hildebrandt

Abstract

Our research examines the hypothesis that products chosen on a shopping trip to a supermarket indicate the preference interdependencies of consumers between different products or brands. The bundle chosen on the trip can be regarded as an indicator of a global utility function. This function implies a cross-category dependence of brand choice behavior. We hypothesize that the global utility function related to a product bundle is the result of the marketing-mix of the underlying brands. The structure of the chosen products allows us to uncover the impact of certain marketing-mix variables and product bundle buying behavior.

Suggested Citation

  • Yasemin Boztuğ & Lutz Hildebrandt, 2008. "Modeling Joint Purchases with a Multivariate MNL Approach," Schmalenbach Business Review (sbr), LMU Munich School of Management, vol. 60(4), pages 400-422, October.
    • Handle: RePEc:sbr:abstra:v:60:y:2008:i:4:p:400-422
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    Citations

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    Cited by:

    1. Harald Hruschka, 2017. "Analyzing the dependences of multi-category purchases on interactions of marketing variables," Journal of Business Economics, Springer, vol. 87(3), pages 295-313, April.
    2. Park, Sangwon & Nicolau, Juan L., 2015. "Differentiated effect of advertising: Joint vs. separate consumption," Tourism Management, Elsevier, vol. 47(C), pages 107-114.
    3. Harald Hruschka, 2017. "Multi-category purchase incidences with marketing cross effects," Review of Managerial Science, Springer, vol. 11(2), pages 443-469, March.
    4. Kwak, Kyuseop & Duvvuri, Sri Devi & Russell, Gary J., 2015. "An Analysis of Assortment Choice in Grocery Retailing," Journal of Retailing, Elsevier, vol. 91(1), pages 19-33.
    5. Hruschka, Harald, 2014. "Linking Multi-Category Purchases to Latent Activities of Shoppers: Analysing Market Baskets by Topic Models," University of Regensburg Working Papers in Business, Economics and Management Information Systems 482, University of Regensburg, Department of Economics.
    6. Feihong Xia & Rabikar Chatterjee & Jerrold H. May, 2019. "Using Conditional Restricted Boltzmann Machines to Model Complex Consumer Shopping Patterns," Marketing Science, INFORMS, vol. 38(4), pages 711-727, July.
    7. Katrin Dippold & Harald Hruschka, 2013. "Variable selection for market basket analysis," Computational Statistics, Springer, vol. 28(2), pages 519-539, April.
    8. Vithala R. Rao & Gary J. Russell & Hemant Bhargava & Alan Cooke & Tim Derdenger & Hwang Kim & Nanda Kumar & Irwin Levin & Yu Ma & Nitin Mehta & John Pracejus & R. Venkatesh, 2018. "Emerging Trends in Product Bundling: Investigating Consumer Choice and Firm Behavior," Customer Needs and Solutions, Springer;Institute for Sustainable Innovation and Growth (iSIG), vol. 5(1), pages 107-120, March.
    9. Dippold, Katrin & Hruschka, Harald, 2010. "Variable Selection for Market Basket Analysis," University of Regensburg Working Papers in Business, Economics and Management Information Systems 443, University of Regensburg, Department of Economics.

    More about this item

    Keywords

    Choice Model; Market Basket Analysis; Spatial Statistics; Theorem of Besag;
    All these keywords.

    JEL classification:

    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing

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