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Estimating Primary Demand for a Heterogeneous-Groups Product Category under Hierarchical Consumer Choice Model
This paper discusses the estimation of primary demand (i.e., the true demand before the stockout-based substitution effect occurs) for a heterogeneous-groups product category that is sold in the department store setting, based on historical sales data, product availability, and market share information. For such products, a hierarchical consumer choice model can better represent purchasing behavior. This means that choice occurs on multiple levels: A consumer might choose a particular productdoi:10.6084/m9.figshare.1568501 fatcat:fwjdhyirlzbidi7ebg3atncn64