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EconStatsCraft › 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.
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.
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.
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.
\text{reach}(S)=\frac{1}{n}\sum_{r=1}^{n}\mathbf{1}\!\left[\exists\, i\in S:\ y_{ri}=1\right]
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.
| If you see this | It means | Do this |
|---|---|---|
| The top-scoring item missing from the best line | Correct and the central insight | Its buyers are covered by others |
| Reach flattening after three items | Submodularity | The natural place to stop the line |
| Greedy and exhaustive disagreeing | Expected; greedy is not optimal | Use exhaustive where the combinatorics allow |
| Reach near 100% with few items | The reach threshold is too generous | Tighten it to a top-box definition |
| Every combination scoring alike | Preferences are undifferentiated | TURF has nothing to find here |
| A high-volume item excluded | TURF counts people, not units | Weight by expected volume if that is the goal |
MaxDiff, which ranks the items TURF then combines. Basket analysis, for co-occurrence rather than coverage.
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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