SCULPTRE: A New Methodology for Deriving and Analyzing Hierarchical Product-Market Structures from Panel Data

Journal of Marketing Research, Vol. 27, No. 4, pp. 418-427, 1990

11 Pages Posted: 2 Jun 2016

See all articles by Venkatram Ramaswamy

Venkatram Ramaswamy

University of Michigan, Stephen M. Ross School of Business

Wayne S. DeSarbo

Pennsylvania State University

Date Written: November 1990

Abstract

The authors propose a new methodology for deriving hierarchical product-market structures from disaggregate purchase data. A hierarchical product-market tree is estimated from scanner panel purchase data in a maximum likelihood framework. The derived product-market representation portrays both products and market segments as terminal nodes in a hierarchical tree where the "closer" a product is to a particular segment, the higher its revealed preference for that product. The hierarchical representation of products and segments as well as the composition of the market segments are derived simultaneously. An empirical application examines the descriptive and predictive validity of the methodology.

Suggested Citation

Ramaswamy, Venkatram and DeSarbo, Wayne S., SCULPTRE: A New Methodology for Deriving and Analyzing Hierarchical Product-Market Structures from Panel Data (November 1990). Journal of Marketing Research, Vol. 27, No. 4, pp. 418-427, 1990, Available at SSRN: https://ssrn.com/abstract=2787310

Venkatram Ramaswamy

University of Michigan, Stephen M. Ross School of Business ( email )

701 Tappan Street
Ann Arbor, MI MI 48109-1234
United States
734-763-5932 (Phone)
734-936-0279 (Fax)

Wayne S. DeSarbo (Contact Author)

Pennsylvania State University ( email )

University Park
State College, PA 16802
United States

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