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Analyzing joint brand purchases by conditional restricted Boltzmann machines
Article
Hruschka, Harald
(2021)
Analyzing joint brand purchases by conditional restricted Boltzmann machines.
Review of Managerial Science 16, pp. 1117-1145.
DOI to cite this document: 10.5283/epub.45991
Abstract
We introduce the conditional restricted Boltzmann machine as method to analyze brand-level market basket data of individual households. The conditional restricted Boltzmann machine includes marketing variables and household attributes as independent variables. To our knowledge this is the first study comparing the conditional restricted Boltzmann machine to homogeneous and heterogeneous ...
We introduce the conditional restricted Boltzmann machine as method to analyze brand-level market basket data of individual households. The conditional restricted Boltzmann machine includes marketing variables and household attributes as independent variables. To our knowledge this is the first study comparing the conditional restricted Boltzmann machine to homogeneous and heterogeneous multivariate logit models for brand-level market basket data across several product categories. We explain how to estimate the conditional restricted Boltzmann machine starting from a restricted Boltzmann machine without independent variables. The conditional restricted Boltzmann machine turns out to excel all the other investigated models in terms of log pseudo-likelihood for holdout data. We interpret the selected conditional restricted Boltzmann machine based on coefficients linking purchases to hidden variables, interdependences between brand pairs as well as own and cross effects of marketing variables. The conditional restricted Boltzmann machine indicates pairwise relationships between brands that are more varied than those of the multivariate logit model are. Based on the pairwise interdependences inferred from the restricted Boltzmann machine we determine the competitive structure of brands by means of cluster analysis. Using counterfactual simulations, we investigate what three different models (independent logit, heterogeneous multivariate logit, conditional restricted Boltzmann machine) imply with respect to the retailer’s revenue if each brand is put on display. Finally, we mention possibilities for further research, such as applying the conditional restricted Boltzmann machine to other areas in marketing or retailing.
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Details
| Item type | Article | ||||
| Journal or Publication Title | Review of Managerial Science | ||||
| Publisher | Springer | ||||
| Open Access Type | DEAL (Springer) | ||||
| Volume | 16 | ||||
| Page Range | pp. 1117-1145 | ||||
| Date | 10 June 2021 | ||||
| Date of publication | 15 Jun 2021 05:11 | ||||
| Institutions | Business, Economics and Information Systems > Institut für Betriebswirtschaftslehre > Lehrstuhl für Marketing (Prof. Dr. Harald Hruschka) | ||||
| Identification Number |
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| Keywords | Marketing, Retailing, Market basket analysis, machine Learning, Restricted Boltzmann machine, Multivariate logit model | ||||
| Dewey Decimal Classification | 300 Social sciences > 330 Economics | ||||
| Status | Published | ||||
| Refereed | Yes, this version has been refereed | ||||
| Created at the University of Regensburg | Yes | ||||
| URN of the UB Regensburg | urn:nbn:de:bvb:355-epub-459916 | ||||
| Item ID | 45991 |
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