Modeling Joint Purchases with a Multivariate MNL Approach

Yasemin Boztug and Lutz Hildebrandt

Schmalenbach Business Review (sbr), 2008, vol. 60, issue 4, 400-422

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.

Keywords: Choice Model; Market Basket Analysis; Spatial Statistics; Theorem of Besag (search for similar items in EconPapers)
JEL-codes: C31 C33 M31 (search for similar items in EconPapers)
Date: 2008
References: Add references at CitEc
Citations: View citations in EconPapers (9)

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