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https://doi.org/10.1080/1331677X.2020.1835518

Customer basket heterogeneity: how to measure it and some possible business applications

Ruben Nicolas-Sans
Daniel González Ibáñez


Puni tekst: engleski pdf 2.796 Kb

str. 2572-2592

preuzimanja: 127

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Sažetak

Companies offering a wide range of products may have an interest in measuring the degree of diversity of their clients’ shopping
baskets as an indicator of consumer behaviour. Customers buying
a wide range of products are somehow more dependent on the
business and their switching costs might be higher compared to
others that only buy a small number of products from your catalogue. We aim to provide companies with a tool to measure how
heterogeneous their clients are in terms of the composition of
their shopping basket. First, the objective of this paper is to take
advantage of some approaches used in other fields to create a
new measurement. Second, we will show some possible applications of this indicator in a business context. We consider that a
client with low heterogeneity is not highly dependent on the
business and is more likely to defect. To check if this intuition is
true, we will test the dependence of heterogeneity and churn
with real data. By proving our hypothesis, we will be potentially
enriching churn models with a new explanatory variable, and we
could prevent the defection of those clients scoring low heterogeneity by making the appropriate marketing decisions.

Ključne riječi

Shopping basket heterogeneity; churn; customer behaviour; hypothesis testing; market basket analysis

Hrčak ID:

301373

URI

https://hrcak.srce.hr/301373

Datum izdavanja:

31.12.2021.

Posjeta: 393 *