Abstract
In many purchase environments, consumers use information from a number of product categories prior to making a decision. These purchase situations create dependencies in choice outcomes across categories. As such, these decision problems cannot be easily modeled using the single-category, single-choice paradigm commonly used by researchers in marketing. We outline a conceptual framework for categorization, and then discuss three types of cross-category dependence: cross-category consideration cross-category learning, and product bundling. We argue that the key to modeling choice dependence across categories is knowledge of the goals driving consumer behavior.
Similar content being viewed by others
References
Ainslie, Andrew and Peter E. Rossi (1998a), “Similarities in Choice Behavior Across Product Categories, ” Marketing Science, 17(2), 91–106.
Ainslie, Andrew and Peter E. Rossi (1998b) “Investigating Household State Dependence Effects Across Categories, ” Working Paper, Johnson School of Management, Cornell University.
Alba, Joseph W. and J. Wesley Hutchinson (1987), “Dimensions of Consumer Expertise, ” Journal of Consumer Research, 13 (March), 411–54.
Barsalou, Lawrence W. (1985), “Ideals, Central Tendency, and Frequency of Instantiation as Determinants of Graded Structure in Categories, ” Journal of Experimental Psychology-Learning, Memory and Cognition, 11(4), 629–54.
Barsalou, Lawrence W. (1991), “Deriving Categories to Achieve Goals, The Psychology of Learning and Motivation, Vol. 27, Gordon H. Bower, ed. New York: Academic Press, 1–64.
Bayus, Barry L., Namwoon Kim and Allan D. Shocker (1998), “Growth Models for Multi-Product Interactions: Current Status and New Directions, ” in V. Mahajan, E. Muller and J. Wind (eds.), Growth, Diffusion and Market Penetration Models (forthcoming).
Bell, David R., Jeongwen Chiang and V. Padmanabhan (1999) “The Decomposition of Promotional Response: An Empirical Generalization” Marketing Science, forthcoming.
Bell, David R. and James M. Lattin (1998) “Shopping Behavior and Consumer Response to Retail Price Format: Why ‘Large Basket’ Shoppers Prefer EDLP, ” Marketing Science, 17(1), 66–88.
Bell, David R., Teck-Hua Ho and Christopher S. Tang (1998) “Determining Where to Shop: Fixed and Variable Costs of Shopping, ” Journal of Marketing Research, 35 (August), 352–369.
Besag, Julian (1974), “Spatial Interaction and the Statistical Analysis of Lattice Systems, ” Journal of the Royal Statistical Society B, 36, 192–236.
Bodapati, Anand V. and V. Srinivasan (1998), “The Impact of Out-of-Store Advertising on Store Sales, ” Working Paper, Northwestern University.
Broniarczyk, Susan M. and Joseph W. Alba (1994), “The Importance of the Brand in Brand Extension, ” Journal of Marketing Research, 31 (May), 214–228.
Brand, Estelle and Rob Gerristen (1998), “Association and Sequencing, ” DBMS Data Mining Solutions Supplement, http://www.dbmsmag.com/9807m03.html.
Brown, D. A., S. F. Buck, and F. G. Pyatt (1965), “Improving the Sales Forecast for Consumer Durables, ” Journal of Marketing Research, 2, 3 (August), 229–234.
Carpenter, Gregory S. and Kent Nakomoto (1989), “Consumer Preference Formation and Pioneering Advantage, ” Journal of Marketing Research, 26 (August), 285–298.
Catalina Marketing (1998), “Checkout Coupon: Now, Customize Incentives Based on Actual Purchase Behavior, ” Catalina Marketing Corporate Homepage on the World Wide Web, http://www.catmktg.com/ prodcpn.htm.
Cressie, Noel A. C. (1993), Statistics for Spatial Data, New York: John Wiley and Sons.
Degeratu, Alexandru, Arvind Rangaswamy and Jianan Wu (1998), “Consumer Choice Behavior in Online and Traditional Supermarkets: The Effects of Brand Name, Price, and Other Search Attributes, ” Working Paper, The Smeal College of Business, Penn State University.
Erdem, Tulin (1998), “An Empirical Analysis of Umbrella Branding, ” Journal of Marketing Research, 35 (August), 339–351.
Farquhar, Peter H. and Vithala R. Rao (1976), “A Balance Model for Evaluating Subsets of Multiattributed Items, ” Management Science, 27(5), 528–539.
Gaeth, Gary J., Irwin P. Levin, Goutam Chakraborty and Aron M. Levin (1991), “Consumer Evaluation of MultiProduct Bundles: An Information Integration Analysis, ” Marketing Letters, 2, 47–57.
Gaeth, Gary J., Irwin P. Levin and Goutam Chakraborty (1996), “Consumer Reactions to Second-hand Information in the Presence of Direct Product Experience, ” Working Paper, University of Iowa.
Gensch, Dennis H. (1987), “A Two-Stage Disaggregate Attribute Choice Model, ” Marketing Science, 6 (Summer), 223–231.
Green, Paul E., Yoram Wind and Arun K. Jain (1972), “Preference Measurement of Item Collections, ” Journal of Marketing Research, 9 (November), 371–377.
Hardie, Bruce G. S., Eric J. Johnson, and Peter S. Fader (1993), “Modeling Loss Aversion and Reference Dependence Effects on Brand Choice, ” Marketing Science, 12 (Fall), 378–394.
Harlam, Bari A. and Leonard M. Lodish (1995), “Modeling Consumers' Choices of Multiple Items, ” Journal of Marketing Research, 32 (November), 392–403.
Hauser, John R. (1986), “Agendas and Consumer Choice, ” Journal of Marketing Research, 23 (August), 199–212.
Hauser, John R. and Birger Wernerfelt (1990), “An Evaluation Cost Model of Consideration Sets, ” Journal of Consumer Research, 16 (March), 393–408.
Howard, John (1977), Consumer Behavior: Application of Theory, New York: John Wiley.
Hutchinson, J. Wesley, Kalyan Raman, and Murali K. Mantrala (1994), “Finding Choice Alternatives in Memory: Probability Models of Brand Name Recall, ” Journal of Marketing Research, 31 (November), 441–461.
Johnson, Michael D. (1989), “The Differential Processing of Product Category and Non-comparable Choice Alternatives, ” Journal of Consumer Research, 16 (December), 300–309.
Johnson, Michael D. and Claes Fornell (1987), “The Nature and Methodological Implications of the Cognitive Representation of Products, ” Journal of Consumer Research, 14 (September), 214–228.
Kamakura, Wagner A., Sridhar Ramaswami and Rajenda K. Srivastava (1991), “Qualification of Prospects for Cross-Selling in the Financial Services Industry, ” International Journal of Research in Marketing, 329–49.
Kim, Namwoon, Dae Ryun Chang, and Allan D. Shocker (1998), “Modeling Inter-Category Dynamics for a Growing Information Technology Industry: The Case of the Wireless Telecommunications Industry, ” Working Paper, Hong Kong University of Science & Technology.
Kim, Namwoon and Rajendra K. Srivastava (1995), “An Initial and Repeat Demand Model for Multi-Generation Technological Product Markets, ” Working Paper, The Hong Kong University of Science & Technology.
Lattin, James M., Christopher Gooley, Rajiv Lal and V. Padmanabhan (1996) “Category Coincidence in Grocery Market Baskets, ” Working Paper, Graduate School of Business, Stanford University.
Loken, Barbara and James Ward (1990), “Alternative Approaches to Understanding the Determinants of Typicality, ” Journal of Consumer Research, 17 (September), 111–26.
Manchanda, Puneet and Sunil Gupta (1997) “The Shopping Basket: A Model for Multi-Category Purchase Incidence Decisions, ” Working Paper, Graduate School of Business, Columbia University.
McAlister, Leigh (1979), “Choosing Multiple Items from a Product Class, ” Journal of Consumer Research, 6 (December), 213–224.
Murphy, Gregory L. and Douglas L. Medin (1985), “The Role of Theories in Conceptual Coherence, ” Psychological Review, 92(1), 289–316.
Nedungadi, Prakash (1990), “Recall and Consumer Consideration Sets: Influencing Choice Without Altering Brand Evaluations, ” Journal of Consumer Research, 17 (December), 263–76.
Norton, John A. and Frank M. Bass (1987), “A Diffusion Theory Model of Adoption and Substitution for Successive Generations of High Technology Products, ” Management Science, 34 (February), 167–185.
Oppewal, Harmen, Jordan J. Louviere, and Harry J.P. Timmermans (1994), “Modeling Hierarchical Conjoint Processes with Integrated Choice Experiments, ” Journal of Marketing Research, 31 (February), 92–105.
Ratneshwar, S. and Allan D. Shocker (1991), “Substitution in Use and the Role of Usage Context in Product Category Structures, ” Journal of Marketing Research, 28 (August), 281–295.
Ratneshwar, S., Cornelia Pechmann, and Allan D. Shocker (1996), “Goal-Derived Categories and the Antecedents of Across-Category Consideration, ” Journal of Consumer Research, 23 (December), 240–250.
Roberts, John H. and James M. Lattin (1991), “Development and Testing of a Model of Consideration Set Composition, ” Journal of Marketing Research, 28 (November), 429–440.
Roberts, John H. and Glen L Urban (1988), “Modeling Multiattribute Utility, Risk, and Belief Dynamics for New Consumer Durable Brand Choice, ” Management Science, 34 (February), 167–185.
Rosch, Eleanor (1978), “Principles of Categorization, ” in Cognition and Categorization, Eleanor Rosch and Barbara B. Lloyd, eds. Hillsdale, NJ: Lawrence Erlbaum Associates, 27–48.
Rosch, Eleanor, Carolyn B. Mervis, Wayne D. Gray, David M. Johnson, and Perry Boyes-Braem (1976), “Basic Objects in Natural Categories, ” Cognitive Psychology, 8 (July), 382–439.
Russell, Gary J. and Wagner A. Kamakura (1997), “Modeling Multiple-Category Brand Preference with Household Basket Data, ” Journal of Retailing, 73 (Winter), 439–461.
Russell, Gary J., David Bell, Anand Bodapati, Christina Brown, Jeongwen Chiang, Gary Gaeth, Sunil Gupta and Puneet Manchanda (1997), “Perspectives on Multiple Category Choice, ” Marketing Letters, 8 (August), 297–305.
Russell, Gary J. and Ann Petersen (1998), “Analysis of Cross-Category Dependence in Market Basket Selection, ” Working Paper, University of Iowa.
Shocker, Allan D., Moshe Ben-Akiva, Bruno Boccaro, and Prakash Nedungadi (1991), “Consideration Set Influences on Consumer Decision-Making and Choice: Issues, Models and Suggestions, ” Marketing Letters, 2(3), 181–197.
Shocker, Allan D., Namwoon Kim and Barry L. Bayus (1999), “On the Relevance of Other Products to Marketing Planning, ” Working Paper, School of Management, San Francisco State University.
Smith, Edward E. and Douglas L. Medin (1981), Categories and Concepts. Cambridge, MA: Harvard University Press.
Srivastava, Rajendra K., Mark I. Alpert, and Allan D. Shocker (1984), “A Customer-Oriented Approach for Determining Market Structures, ” Journal of Marketing, 48 (Spring), 32–45.
Tversky, Amos and S. Sattath (1979), “Preference Trees, ” Psychological Review, 86 (November), 542–573.
Yadav, Manjit S. and Kent B. Monroe (1993), “How Buyers Perceive Savings in a Bundle Price: An Examination of a Bundle's Transaction Value, ” Journal of Marketing Research, 30 (August), 350–358.
Author information
Authors and Affiliations
Rights and permissions
About this article
Cite this article
Russell, G.J., Ratneshwar, S., Shocker, A.D. et al. Multiple-Category Decision-Making: Review and Synthesis. Marketing Letters 10, 319–332 (1999). https://doi.org/10.1023/A:1008143526174
Issue Date:
DOI: https://doi.org/10.1023/A:1008143526174