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Modeling Joint Purchases with a Multivariate MNL Approach

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Author Info

  • 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.

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Bibliographic Info

Article provided by LMU Munich School of Management in its journal Schmalenbach Business Review.

Volume (Year): 60 (2008)
Issue (Month): 4 (October)
Pages: 400-422

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Handle: RePEc:sbr:abstra:v:60:y:2008:i:4:p:400-422

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Related research

Keywords: Choice Model; Market Basket Analysis; Spatial Statistics; Theorem of Besag;

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Cited by:
  1. 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.
  2. Katrin Dippold & Harald Hruschka, 2013. "Variable selection for market basket analysis," Computational Statistics, Springer, vol. 28(2), pages 519-539, April.

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