Untangling the complexity of market competition in consumer goods—A complex Hilbert PCA analysis

Abstract

Today’s consumer goods markets are rapidly evolving with significant growth in the number of information media as well as the number of competitive products. In this environment, obtaining a quantitative grasp of heterogeneous interactions of firms and customers, which have attracted interest of management scientists and economists, requires the analysis of extremely high-dimensional data. Existing approaches in quantitative research could not handle such data without any reliable prior knowledge nor strong assumptions. Alternatively, we propose a novel method called complex Hilbert principal component analysis (CHPCA) and construct a synchronization network using Hodge decomposition. CHPCA enables us to extract significant comovements with a time lead/delay in the data, and Hodge decomposition is useful for identifying the time-structure of correlations. We apply this method to the Japanese beer market data and reveal comovement of variables related to the consumer choice process across multiple products. Furthermore, we find remarkable 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, limitations, and further development of the proposed method.

Identification of Demand Type Differences and Their Impact on Consumer Behavior: A Case Study Based on Smart Wearable Product Design

“…This research takes smart bracelets among smart wearable products as a case study, and develops a research framework based on relevant literature, as shown in Fig. 1 [26,27,28]. The research process is mainly divided into two stages: the first stage involves semantic analysis to acquire demand information, while the second stage uses KANO analysis to classify demands and finally summarizes applicable design strategies based on demand classification characteristics.…”

Investigation of the Effects of Social Capital on Information/Knowledge-Sharing Behavior that Drives Gen Z Purchase Intentions through Social Commerce

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