JSM 2005 - Toronto

Abstract #303987

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Activity Number: 22
Type: Topic Contributed
Date/Time: Sunday, August 7, 2005 : 2:00 PM to 3:50 PM
Sponsor: Section on Statistics and Marketing
Abstract - #303987
Title: SURF: Structural Unduplicated Reach and Frequency
Author(s): Kristen O'Donnell*+ and Stan Lipovetsky
Companies: GfK Custom Research, Inc. and GfK Custom Research, Inc.
Address: 475 Park Ave South, New York, NY, 10016, United States
Keywords: Latent Structure Analysis ; Shapley Value ; TURF ; cooperative games ; marketing research
Abstract:

We apply Lazarsfeld's Latent Structure Analysis (LSA) to problems in marketing involving choice of products with maximum customer coverage. Traditionally, such an analysis is done utilizing TURF (Total Unduplicated Reach and Frequency) analysis or Shapley Value analysis, which is the application of a cooperative game theory construct to this coverage problem. Both TURF and Shapley Value are total market solutions and do not take advantage of structural heterogeneity in the marketplace. LSA allows the creation of market segments with differing TURF and Shapley Value solutions, giving the marketer greater understanding of the best product line for introduction to the marketplace.

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Revised March 2005