MODELING MULTIPLE CATEGORY BRAND PREFERENCE WITH HOUSEHOLD BASKET DATA

Household basket data contain important information about the structur e of brand preferences both within and across product categories. This research exploits the information in long-run basket summary data to segment consumers with respect to brand preferences. The approach prov ides insights into the competitive structure of brands within each pro duct category and identifies potential synergies across product catego ries. The model is applied in art analysis of retailer and national br and name preferences for four paper goods categories. We discuss impli cations for joint promotion, product bundling and product assortment d ecisions.