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Modeling Joint Purchases with a Multivariate MNL Approach

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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.

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Correspondence to Lutz Hildebrandt.

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Financial support by the German Research Foundation (DFG) through the research project #B0 1952/1, and through the Sonderforschungsbereich 649 is gratefully acknowledged. The authors thank two anonymous referees for valuable comments.

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Boztuğ, Y., Hildebrandt, L. Modeling Joint Purchases with a Multivariate MNL Approach. Schmalenbach Bus Rev 60, 400–422 (2008). https://doi.org/10.1007/BF03396777

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