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A Market Basket Analysis Conducted with a Multivariate Logit Model

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From Data and Information Analysis to Knowledge Engineering

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.

Financial support by the German Research Foundation (DFG) through the research project #BO 1952/1, and through the Sonderforschungsbereich 649 is gratefully acknowledged.

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Boztuğ, Y., Hildebrandt, L. (2006). A Market Basket Analysis Conducted with a Multivariate Logit Model. In: Spiliopoulou, M., Kruse, R., Borgelt, C., Nürnberger, A., Gaul, W. (eds) From Data and Information Analysis to Knowledge Engineering. Studies in Classification, Data Analysis, and Knowledge Organization. Springer, Berlin, Heidelberg. https://doi.org/10.1007/3-540-31314-1_68

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