Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/25089 
Year of Publication: 
2006
Series/Report no.: 
SFB 649 Discussion Paper No. 2006,006
Publisher: 
Humboldt University of Berlin, Collaborative Research Center 649 - Economic Risk, Berlin
Abstract: 
There are two main research traditions for analyzing market basket data that exist more or less independently from each other, namely exploratory and explanatory model types. Exploratory approaches are restricted to the task of discovering cross-category interrelationships and provide marketing managers eith only very limited recommendations regarding decition making. The latter type of models focus on estimating the effects of category-level marketing mix variables on purchase incidences assuming cross-category dependencies. We propose a procedure that combines these two modeling approaches in a novel two-stage procedure for analyzing cross-category effects based on shopping basket data: In a data compression step we first derive a set of market basket prototypes and generate segments of households with internally more distinctive (complementary) cross-category interdependencies. Utilizing the information on categories that are most responsible for prototype construction, segment-specific multivariate logistic models are estimated in a second step. Based on the data-driven way of basket construction, we can show significant differences in cross-effects and related price elasticities both across segments and compared to the global (segment-unspecific) model.
Subjects: 
Marketing
Choice Models
Market Basket Analysis
Cross-Category Effects
Segmentation
JEL: 
C31
C33
C35
C63
M31
Document Type: 
Working Paper

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