Patent Document ID: 7680685
Application ID: 10862104
Patent Flag: 1

Claim One:
1. A computer readable medium, comprising instructions that when executed by a processor causes the computer to perform the steps implemented method of modeling customer response, comprising: providing in an affinity and cannibalization model a linear relationship between a first basket share function b i (t) describing transaction frequency for a first product P i purchased and a second basket share function b j (t) describing transaction frequency for a second product P j purchased as determined from transaction log data, wherein the linear relationship includes a constant of proportionality between the first and second functions estimated as the difference between a probability of the customer purchasing P i given that P j is already selected for purchase, and a probability of a customer purchasing P i given that P j is not selected for purchase, given by the following equation: {acute over (α)} ij =Γ(P i |P j )−Γ(P i |−P j ), where Γ( ) is the conditional probability on the first and second products P i and P j , and {acute over (α)} ij is the constant of proportionality; and solving for the constant of proportionality using the transaction log data.