Purpose: This study examines how basket structure and its evolution influence consumer consumption outcomes based on transaction data at the basket level. Unlike prior research that primarily focuses on single purchase outcomes, this study identifies four representative basket types through cluster analysis. Research design, data, and methodology: At the individual level, it constructs dominant basket style and basket style switching behavior to capture both relatively stable consumption tendencies and dynamic behavioral changes. In addition, the study introduces consumption environment diversity―defined as the range of retailers and channels a consumer engages with―to examine its moderating role. Results: The empirical results are as follows. First, consumers whose dominant basket style is diversified or combination-oriented exhibit significantly higher spending levels. Second, basket style switching frequency has a significant effect across all three outcome dimensions, leading to higher purchase frequency, greater spending, and shorter inter-purchase intervals. Conclusions: Overall, the findings suggest that consumer performance is not only determined by consumption levels but is also closely related to the ability to switch between different basket structures. By focusing on “how baskets are constructed” and “how baskets evolve,” this study provides a new analytical framework for understanding consumer behavior. It also offers practical managerial implications for retailers seeking to optimize customer management strategies in an omni-channel environment.
Huang et al. (Wed,) studied this question.