SURF — STRUCTURAL UNDUPLICATED REACH AND FREQUENCY: LATENT CLASS TURF AND SHAPLEY VALUE ANALYSES

Abstract

Lazarsfeld's Latent Structure Analysis (LSA) is applied to problems in marketing involving the choice of products with maximum customer coverage. The LSA is combined with Total Unduplicated Reach and Frequency (TURF) technique, and also with a tool from cooperative game theory, the Shapley Value (SV), also known as the fuzzy Choquet integral. SV is used for ordering the items by their strength in covering the maximum number of consumers, which provides more stable results than TURF. Structural Unduplicated Reach and Frequency (SURF) analysis is introduced as the LSA segmentation of customers with different preferences across the products. The blending of LSA with TURF and SV yields new abilities of the latent structured TURF and SV. The marketing strategy based on using these techniques permits the identification of the preferred combinations in media or product mix for different population segments.