EconStatsCraft › TURF - reach of a product line

TURF - reach of a product line

Which combination of items satisfies the most people. A preference ranking says which item is best; this says which three together reach furthest, and the answers differ whenever tastes overlap - the second-best item is often redundant.

What it needs

The intuition

Total unduplicated reach and frequency asks which small set of products reaches the most DIFFERENT people. It is not a ranking exercise: the best individual item is often absent from the best bundle, because the people it reaches are already covered by cheaper companions. What matters is not how good an item is but how much of the population it adds that nothing else in the line covers.

When to use it

Assortment and range decisions: which flavours to stock, which SKUs to keep, which package of benefits to offer. Any question where you can only offer a few things and want to leave as few people out as possible.

Where the estimator comes from

Let R_{ij}=1 if respondent i would buy item j. The reach of a set S is \text{Reach}(S)=\frac{1}{n}\sum_i \mathbf{1}\!\left[\textstyle\bigcup_{j\in S}R_{ij}=1\right], the share covered by AT LEAST one member. Maximising this over sets of size k is the maximum coverage problem, which is NP-hard, so exhaustive search is only feasible for small k and modest item counts - \binom{20}{4} is 4,845 and fine, \binom{50}{6} is 15.9 million and not. The greedy algorithm - repeatedly add whichever item adds the most new reach - is guaranteed to reach at least 1-1/e\approx63\% of the optimum (Nemhauser, Wolsey and Fisher, 1978), and in practice much closer, but it is NOT optimal.

The model

\text{reach}(S)=\frac{1}{n}\sum_{r=1}^{n}\mathbf{1}\!\left[\exists\, i\in S:\ y_{ri}=1\right]

What it assumes

Statistical properties

How to read the output

A worked reading

Twelve flavours, 500 respondents. Mango has the single largest reach at 62.4% - run the MaxDiff module on the same data and it also ranks first on preference share - and yet the best three-flavour line is Coffee, Strawberry and Vanilla at 90.2%, with Mango nowhere in it. The greedy build shows the mechanism: taking Mango first (62.4%) then Coffee adds 22.6 points of INCREMENTAL reach for 29.2% of its own, and Lemon then adds only 4.6 more, ending at 89.6%. The optimising search finds 90.2% by giving up the strongest single item for three that overlap less. That is the whole lesson of TURF and the reason a ranking cannot be read as a shortlist: the second item is chosen for who it reaches that the first does not, so an item can be everyone's second favourite and still earn its place ahead of the winner.

Symptom → diagnosis → what to do

If you see thisIt meansDo this
The top-scoring item missing from the best lineCorrect and the central insightIts buyers are covered by others
Reach flattening after three itemsSubmodularityThe natural place to stop the line
Greedy and exhaustive disagreeingExpected; greedy is not optimalUse exhaustive where the combinatorics allow
Reach near 100% with few itemsThe reach threshold is too generousTighten it to a top-box definition
Every combination scoring alikePreferences are undifferentiatedTURF has nothing to find here
A high-volume item excludedTURF counts people, not unitsWeight by expected volume if that is the goal

Common mistakes

Where to read this properly

See also

MaxDiff, which ranks the items TURF then combines. Basket analysis, for co-occurrence rather than coverage.

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Conjoint analysis · MaxDiff (best–worst scaling) · Price sensitivity (Van Westendorp) · Market basket analysis · Perceptual map · Scale reliability (Cronbach’s alpha) · Key driver analysis

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