S. Siddarth et al., MAKING THE CUT - MODELING AND ANALYZING CHOICE SET RESTRICTION IN SCANNER PANEL-DATA, Journal of marketing research, 32(3), 1995, pp. 255-266
The authors develop an approach to determine and analyze choice set re
striction on the basis of secondary source information on consumer pur
chase histories. Individual-level choice sets are estimated using a Ba
yesian updating procedure in conjunction with the multinomial legit mo
del, The authors apply the procedure to scanner panel data for the liq
uid laundry detergent category. An analysis of estimated choice sets a
cross panelists reveals that market share does not ''go hand-in-hand''
with choice set share (the percentage of choice sets in which a brand
is a member), Examining choice set membership patterns, such as the c
ooccurrence of brands in the same product line, also provides insight
into sister-brand cannibalization. Estimation results also show that p
romotions can expand choice sets, providing excluded brands a means to
gain entry and long-term sales benefits.