A New Approach
Shopper Foresight takes a different, but proven, approach.
Today’s marketing mix models are based on linear regression. Linear regression treats every marketing component—advertising, merchandising and promotions—as independent and additive.
Shopper Foresight uses a different mathematical technique: Vector Autoregression. This approach was developed specifically to analyze complex, interdependent relationships and trends. Vector Autoregression provides accuracy and simplicity by systematically organizing driver variables into a matrix across time. The Federal Reserve has used this approach since the 1980’s to analyze and predict the performance of the U. S. economy.
Linear Regression
(single equation)
|
Vector Autoregression
(structured systems of equations)
|
Consistent shopper marketing evaluation, and adoption into the planning process, will return dramatic payback over time.
Source: Hoyt & Company study of leading companies in CPG shopper marketing
