Attractiveness or a barrier?

Eugen G Tarnow  May 3 2017 12:17:52 PM

By Eugen Tarnow, Ph.D.
Avalon Business Systems, Inc.
http://AvalonAnalytics.com

Louis Vuitton's VP of Analytics, Carey Chou, performed a fascinating and thorough analysis of their web sales data and found that some products act as attractors to other products.  See this example (taken from https://sharedmemory.github.io/blog/2016/10/13/customer-choice-model-and-attraction-effect/ ):



The probability that the customer will buy a particular bag is changed as a third alternative is introduced.  This third alternative makes the first bag more attractive and the second bag less attractive.  Note that the probability of sale is extremely low for this third bag.

But perhaps the third bag acts somewhat as a barrier preventing the user from scanning to the right?  The effects are small but the ideas are interesting.
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