doi:10.1016/j.dss.2007.03.014
Copyright © 2007 Elsevier B.V. All rights reserved.
Is this brand ephemeral? A multivariate tree-based decision analysis of new product sustainability
aFaculty of Commerce, Kansai University, Osaka, Japan
bDepartment of Biostatistical Sciences, Wake Forest University School of Medicine, USA
cDepartment of Architecture and Architectural Engineering, Kyoto University, Japan
Accepted 30 March 2007.
Available online 19 April 2007.
References and further reading may be available for this article. To view references and further reading you must
purchase this article.
Abstract
Decision tree methodology has become an increasingly important tool set in the field of decision science. We develop a multivariate, tree-based decision system for a new application: the determination of whether a newly launched consumer product should be allowed to continue in a highly competitive market. The system is designed to overcome a shortcoming–the inability to capture multivariate interactions–of traditional decision methods. We apply the proposed method to an instant noodle sales data set that contains 38 million transactions, and compare results across several methods.
Keywords: Sequential pattern analysis; New products; EBONSAI; Multivariate decision system; Instant noodle
Fig. 1. Shelf space for instant noodles in a typical Japanese supermarket (a) aisle, and (b) shelf.
Fig. 2. System architecture for a decision system for newly launched products.
Fig. 3. The distribution of survival time of new products. The horizontal axis indicates range of days. The vertical axis indicates counts of brands.
Fig. 4. The two-step transformation procedure for input variables.
Fig. 5. a. The tree obtained from EBONSAI applied on the data set in Table 2. b. Single node produced by ID3 applied to data set in Table 2.
Fig. 6. The l EBONSAI tree for classifying survival status of new instant noodle brands. A higher number implies a higher level of the quantitative variable.
Fig. 7. Comparison of EBONSAI, C4.5, logistic regression, and neural network for predicting survivor and non-survivor brands on performance measures: (a) Recall, (b) Precision, (c) F-measure, and (d) Matthews correlation coefficient.
Fig. 8. Comparing EBONSAI and C4.5 with varying pruning parameter (upper confidence limit of error rate) for Matthews correlation coefficient.
Table 1.
Descriptive statistics of important variables in the model. The week number is represented as (1), (2), and (3)

Table 2.
An example data set to illustrate the shortcoming of learning based on a univariate split

Table 3.
Classification of prediction outcomes. TP: True positives, TN: true negatives, FP: false positive, and FN: false negative
