Making the Cut: Modeling and Analyzing Choice Set Restriction in Scanner Panel Data

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  • S. Siddarth
    An assistant professor and Finning Limited Junior Professor of Marketing, Faculty of Commerce, University of British Columbia.
  • Randolph E. Bucklin
    An associate professor, William E. Leonhard Chair in Management, Anderson Graduate School of Management, University of California, Los Angeles.
  • Donald G. Morrison
    The William E. Leonhard Chair in Management, Anderson Graduate School of Management, University of California, Los Angeles.

Bibliographic Information

Published
1995-08
Rights Information
  • https://journals.sagepub.com/page/policies/text-and-data-mining-license
DOI
  • 10.1177/002224379503200302
Publisher
SAGE Publications

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<jats:p> The authors develop an approach to determine and analyze choice set restriction on the basis of secondary source information on consumer purchase histories. Individual-level choice sets are estimated using a Bayesian updating procedure in conjunction with the multinomial logit model. The authors apply the procedure to scanner panel data for the liquid laundry detergent category. An analysis of estimated choice sets across 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 cooccurrence of brands in the same product line, also provides insight into sister-brand cannibalization. Estimation results also show that promotions can expand choice sets, providing excluded brands a means to gain entry and long-term sales benefits. </jats:p>

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