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A market basket analysis conducted with a multivariate logit model

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  • Boztuğ, Yasemin
  • Hildebrandt, Lutz

Abstract

The following research is guided by the hypothesis that products chosen on a shopping trip in a supermarket can indicate the preference interdependencies between different products or brands. The bundle chosen on the trip can be regarded as the result of a global utility function. More specifically: the existence of such a function implies a cross-category dependence of brand choice behavior. It is hypothesized that the global utility function related to a product bundle results from the marketing-mix of the underlying brands. Several approaches exist to describe the choice of specific categories from a set of many alternatives. The models are discussed in brief; the multivariate logit approach is used to estimate a model with a German data set.

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  • Boztuğ, Yasemin & Hildebrandt, Lutz, 2005. "A market basket analysis conducted with a multivariate logit model," SFB 649 Discussion Papers 2005-028, Humboldt University Berlin, Collaborative Research Center 649: Economic Risk.
    • Handle: RePEc:zbw:sfb649:sfb649dp2005-028
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    1. repec:hum:wpaper:sfb649dp2006-006 is not listed on IDEAS
    2. Boztuğ, Yasemin & Reutterer, Thomas, 2006. "A combined approach for segment-specific analysis of market basket data," SFB 649 Discussion Papers 2006-006, Humboldt University Berlin, Collaborative Research Center 649: Economic Risk.

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