Using Multidimensional Item Response Theory Models to Explain Multi-Category Purchases

Schröder, Nadine (2017) Using Multidimensional Item Response Theory Models to Explain Multi-Category Purchases. Marketing ZFP, 39 (2). pp. 27-37. ISSN 0344-1369

Available under License Creative Commons: Attribution-NonCommercial-NoDerivatives 4.0 International (CC BY-NC-ND 4.0).

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We apply multidimensional item response theory models (MIRT) to analyse multi-category purchase decisions. We further compare their performance to benchmark models by means of topic models. Estimation is based on two types of data sets. One contains only binary the other polytomous purchase decisions. We show that MIRT are superior w. r. t. our chosen benchmark models. In particular, MIRT are able to reveal intuitive latent traits that can be interpreted as characteristics of households relevant for multi-category purchase decisions. With the help of latent traits marketers are able to predict future purchase behaviour for various types of households. These information may guide shop managers for cross selling activities and product recommendations.

Item Type: Article
Keywords: Multidimensional Item Response Theory, Multi-Category Purchase Behaviour, Market Basket Analysis
Divisions: Departments > Marketing > Interactive Marketing and Social Media
Version of the Document: Published
Depositing User: Gertraud Novotny
Date Deposited: 28 Sep 2018 12:01
Last Modified: 01 Aug 2020 19:00
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