Analyzing competitive market structures and consumer heterogeneity: a comparison of simultaneous approaches


Type Research Project

Funding Bodies
  • Austrian Science Fund

Duration Jan. 1, 1997 - Nov. 30, 1998

  • Computer Integrated Manufacturing (CIM) AE (Details)
  • Retailing AE (Former organization)
  • Produktionsmanagement (Taudes) AE (Details)

Tags

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  • Natter, Martin (Former researcher)
  • Reutterer, Thomas (Details) Project Head
 

Abstract (English)

Once the marketing analyst wishes to determine Competitive Market Structure (CMS) he or she may choose among a set of data reduction techniques (such as cluster analysis of multidimensional scaling) that produce discrete (non-spatial) or spatial configurations of competing products/brands with respect to their observed substitutionality as seen by consumers. Since input data are organized in a two- or multi-mode manner (e.g. consumers' brand choice probabilities or preference data, attribute ratings, etc.), CMS always has to deal with consumer heterogeneity. Therefore, advanced methods like the MULTICLUS procedure by DeSarbo, Howard and Jedidi (1991) combine the two interrelated tasks of CMS and segmentation analysis into one single model. Performance of the Self-Organizing (Feature) Map (SOM) methodology as originally proposed by Kohonen (1982) is compared to MULTICLUS solutions in such a combined CMS/segmentation context. As a special variant of artificial neural network models SOMs also perform simultaneous clustering and topological representation of data vectors and thus seem to be well-prepared for multi-mode data analysis. As input data household-level choice probabilities for (potential) rival brands as derived from panel data are used. Unlike the maximum likelihood based MULTICLUS procedure, the SOM methodology arrives at a non-linear topological projection of high-dimensional input data onto a two-dimensional discrete map through an adaptive training process. Once SOM training is completed, the latter can be identified via households' assignments (a posteriori segmentation) to fuzzy partitions representing distinctive patterns of brand competition (segment-specific CMS). Relative similarities between MULTICLUS and SOM solutions are investigated and performance requirements are discussed.

Publications

Book (monograph)

1997 Reutterer, Thomas. 1997. Analyse von Wettbewerbsstrukturen mit neuronalen Netzen - Ein Ansatz zur Kundensegmentierung auf Basis von Haushaltspaneldaten. Forschungsergebnisse der Wirtschaftsuniversität Wien, 398 S., Wien: Service-Fachverlag, ISBN 3-85428-374-1 (Details)

Journal article

2000 Reutterer, Thomas, Natter, Martin. 2000. Segmentation Based Competitive Analysis with MULTICLUS and Topology Representing Networks. Computers & Operations Research. Special Issue on Neural Networks for Business Applications, 27, 11-12, 1227-1247 (Details)

Chapter in edited volume

1999 Reutterer, Thomas. 1999. Panel-Data Based Competitive Market Structure and Segmentation Analysis Using Self-Organizing Feature Maps. In: Gaul, Wolfgang, Locarek-Junge, Hermann (eds.): Studies in Classification, Data Analysis, and Knowledge Organization, Volume 14: Classification in the Information Age, 520-528, Berlin, New York: Springer-Verlag (Details)

Contribution to conference proceedings

1999 Reutterer, Thomas, Natter, Martin. 1999. Market Segmentation and Competitive Analysis: MULTICLUS versus SOM. In: Hildebrandt, Lutz, Annacker, Dirk, Klapper, Daniel (eds.): Marketing and Competition in the Information Age. Proceedings of the 28th EMAC Conference on CD, Humboldt University, Berlin (Details)
1998 Reutterer, Thomas. 1998. Combined Market Structure and Segmentation Analysis Based on Brand Choice Data: Overcoming the Limitations of Conventional Techniques with Topologically Ordered Feature Maps. In: Pelton, Lou E., Schnedlitz, Peter (eds.): Proceedings of the 1998 AMA Marketing Exchange Colloquium, Hilton Hotel, Vienna, 402-417 (Details)
  Reutterer, Thomas. 1998. Competitive Market Structure and Segmentation Analysis with Self-Organizing Feature Maps. In: Andersson, Per (ed.): Proceedings of the 27th EMAC Conference. Track 5: Marketing Research, 85-115, Stockholm, Sweden (Details)
1997 Reutterer, Thomas. 1997. Using Self-Organizing Feature Maps (SOMs) for Simultaneously Performing Positioning and Segmentation Analysis. In: Viestová, Kristina, Richterová, Kornélia (eds.): Východiská segmentácie trhu - Zborník z medzinárodnej konferencie. Ekonomická univerzita v Bratislave, Slovakia, 92-117, ISBN 80-225-0933-7 (Details)
1996 Reutterer, Thomas. 1996. Analyzing Market Segments and Competitive Market Structure from Brand Switching Data. 9th EMAC/EIASM Colloquium for Doctoral Students in Marketing, Budapest, Hungary (Details)
  Reutterer, Thomas. 1996. Inferring Competitive Market Structures: Current Methodological Issues and Outline of a Neurocomputing Approach. Proceedings of the II CEMS Academic Conference. Università Commerciale Luigi Bocconi, Milan, Italy (Details)

Paper presented at an academic conference or symposium

1999 Reutterer, Thomas, Schiebel, Edgar. 1999. Compression and Representation of Market Basket Data. 23rd Annual Conference Gesellschaft für Klassifikation e. V.: "Classification and Information Processing at the Turn of the Millennium", 10-12 March, 1999, University of Bielefeld, Germany (Details)
  Reutterer, Thomas, Natter, Martin. 1999. Market Segmentation and Competitive Analysis: MULTICLUS versus SOM. 28th EMAC Conference, 11-14 May, 1999, Humboldt-Universität zu Berlin, Germany (Details)
1998 Reutterer, Thomas, Natter, Martin. 1998. Analyzing Competitive Market Structures and Consumer Heterogeneity: A Comparison of Simultaneous Approaches. INFORMS Marketing Science Conference on "Marketing Science in a Global Economy", July 10-13, 1998, INSEAD, Fontainebleau, France (Details)
  Reutterer, Thomas. 1998. Combined Market Structure and Segmentation Analysis Based on Brand Choice Data: Overcoming the Limitations of Conventional Techniques with Topologically Ordered Feature Maps. AMA Marketing Exchange Colloquium, July 23-25, 1998, Vienna, Austria (Details)
  Reutterer, Thomas. 1998. Competitive Market Structure and Segmentation Analysis with Self-Organizing Feature Maps. 27th EMAC Conference, 20-23 May, 1998, Stockholm School of Economics, Sweden (Details)
  Reutterer, Thomas. 1998. Panel-Data Based Competitive Market Structure and Segmentation Analysis Using Self-Organizing Feature Maps. 22nd Annual Conference Gesellschaft für Klassifikation e. V.: "Challenges for the Information Society Concerning Data Analysis and Knowledge Processing", 4-6 March, 1998, Dresden University of Technology, Germany (Details)
1997 Reutterer, Thomas. 1997. Using Self-Organizing Feature Maps (SOMs) for Simultaneously Performing Positioning and Segmentation Analysis. New Concepts of Market Segmentation Conference, 23-24 November, 1997, Ekonomická univerzita v Bratislave, Slovakia (Details)
1996 Reutterer, Thomas. 1996. Analyzing Market Segments and Competitive Market Structure from Brand Switching Data. 9th EMAC/EIASM Colloquium for Doctoral Students in Marketing, 12-14 May, 1996, Budapest, Hungary (Details)
  Reutterer, Thomas. 1996. Inferring Competitive Market Structures: Current Methodological Issues and Outline of a Neurocomputing Approach. II CEMS Academic Conference: "Recent Developments in Research in Economics and Business: Perspectives for European Firms and Managers", 12-14 September, 1996, Università Commerciale Luigi Bocconi, Milan, Italy (Details)

Unpublished lecture

1999 Buchta, Christian, Dolnicar, Sara, Reutterer, Thomas. 1999. Applications of adaptive partitioning/permutational testing methodology to market structure and competition analysis. SFB-Adaptive Friday - Research Seminar of the Special Research Program on 'Adaptive Systems and Modeling in Economics and Management Science', 21-05-1999, Vienna, Austria (Details)
1998 Reutterer, Thomas. 1998. Neuere Methoden zur Segmentierung von Märkten am Beispiel der GfK-Haushaltspaneldaten. Vortrag am Institut für Handel, Absatz und Marketing der Karl-Franzens-Universität Graz, 03-12-1998, Graz, Austria (Details)

Classification

  • 1138 Information systems (Details)
  • 5937 Information systems (Details)

Expertise

  • market segmentation
  • consumer