Method for estimating purchases made by customers
View Patent ↗Purchases made by customers of a supplier of interest from other suppliers are estimated based upon panelist data regarding purchases made by panelists from the supplier of interest and from the other suppliers, and based upon customer data regarding purchases made by the customers from the supplier of interest. The panelists are a subset of the customers. A linear relationship between the purchases made by the panelists from the supplier of interest and the purchases made by the panelists from the other suppliers is determined. Based upon the customer data and the linear relationship, the purchases made by the customers from the other suppliers are estimated.
1. A method, performed on a computer, to estimate purchases made by preferred customers at competitive suppliers, comprising:
retrieving panelist data associated with customer purchases and customer data associated with purchases by preferred customers at a supplier of interest;
comparing a value of the customer data with a threshold value of purchasing behavior to identify inconsistent data;
removing the identified inconsistent data from the retrieved customer data;
generating a customer purchase scoring matrix by performing an unrotated principal components factor analysis on the customer data from which the inconsistent data has been removed;
generating a panelist set of factors and a customer set of factors based on scoring the panelist data and the customer data, respectively;
creating predictor variables based on the panelist set of factors and the customer set of factors;
generating, on a processor of the computer, a relationship between panelist purchases at the supplier of interest and panelist purchases at competitive suppliers, the relationship based on a linear regression of a number of panelists associated with the predictor variables; and
estimating purchases made by the preferred customers at the competitive suppliers by applying the relationship to the customer data.
2. A method as defined in claim 1 , wherein the predictor variables are associated with at least one of a total number of panelist trips, a total number of customer trips, or a sum of dollars spent by panelists in a product category.
3. A method as defined in claim 1 , further comprising generating criterion variables based on a number of panelists associated with each of the predictor variables.
4. A method as defined in claim 1 , wherein the threshold value to identify inconsistent customer data comprises an amount of money spent per unit of time.
5. A method as defined in claim 1 , wherein the threshold value to identify inconsistent customer data comprises an amount of money spent per product category.