A dynamic analysis of market response with joint space mapping

We propose a model for joint space market response analysis incorporating the individual level preference change. Several joint space analysis methods with ideal vectors have been proposed in the marketing literature. We can infer brand positions and individual level ideal vectors in an attribute space. Yet, customers may change their preferences during the data period. We introduce the preference change into joint space analysis. The contribution of this study is that we develop a method to visualize the market structure using scanner data, incorporating preferences change of households. In addition to this contribution, the variety seeking behavior, which could not be incorporated in the previous joint space analyses, can be expressed in our new method. The empirical analysis shows that more than half the households change their ideal vector during the data period.