|Author Name||MIZUNO Makoto (Meiji University) / AOYAMA Hideaki (Faculty Fellow, RIETI) / FUJIWARA Yoshi (University of Hyogo)|
|Creation Date/NO.||August 2020 20-E-070|
|Research Project||Dynamics of Economy and Finance from the Economic Network Point of View|
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In today's rapidly evolving consumer markets, obtaining a quantitative grasp of the customer journey (the sequence of touch points where customers and brands meet, which is important for marketing strategy) requires analysis of extremely high-dimensional data. Existing studies ignore the effects of touch points of multiple brands that are mutually competitive. We propose to apply a novel method called complex Hilbert principal component analysis (CHPCA) to allow unbiased, model-free analysis, and construct a synchronization network using Hodge decomposition. We apply this method to Japanese beer market data and show that it is suitable for the construction of the customer journey map both within-brand and across brands, the latter reflecting competition among firms. Furthermore, we capture customer heterogeneity by calculating the coordinates of each customer in the space derived from the results of CHPCA. Lastly, we discuss the policy and managerial implications, the limitations, and further development of the proposed method.
Published: Mizuno, Makoto, Hideaki Aoyama, and Yoshi Fujiwara, 2021. "Untangling the complexity of market competition in consumer goods - A complex Hilbert PCA analysis," PLOS ONE, 16(2): e0245531.