A Market Basket Analysis Conducted with a Multivariate Logit Model

Yasemin Boztug and Lutz Hildebrandt

No SFB649DP2005-028, SFB 649 Discussion Papers from Humboldt University, Collaborative Research Center 649

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.

Keywords: market basket analysis; multivariate logit model; brand choice behavior; marketing-mix (search for similar items in EconPapers)
JEL-codes: C31 C33 M31 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dcm, nep-mkt and nep-upt
Date: 2005-05
View list of references View citations in EconPapers

Downloads: (external link)
http://sfb649.wiwi.hu-berlin.de/papers/pdf/SFB649DP2005-028.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:hum:wpaper:sfb649dp2005-028

Access Statistics for this paper

More papers in SFB 649 Discussion Papers from Humboldt University, Collaborative Research Center 649
Contact information at EDIRC.
Series data maintained by Janine Tellinger ().