Method and system for building a consumer decision tree in a hierarchical decision tree structure based on in-store behavior analysis

The present invention is a system and method for determining the hierarchical purchase decision process of consumers in front of a product category. The decision path of consumers is obtained by combining behavior data with the category layout and transaction data based on observed actual in-store purchase behavior using a set of video cameras and software for extracting sequence and timing of each consumer's decision process. A hierarchical decision tree structure comprises nodes and edges, wherein a node represents the state-of-mind of the consumer, the number of nodes is predefined, and an edge represents the transition of the decision. The decisions for each product group are captured down to the product attribute level and analyzed by demographic group. The outcome provides relative importance of each product attribute in the purchase decision process, and helps retailers and manufacturers to evaluate the layout of the category and customize it for key segment.