A Two-Stage Disaggregate Attribute Choice Model
AbstractA two-stage disaggregate attribute choice model is proposed and empirically implemented. The first stage of the model is attribute processing to screen the number of alternatives down to a lesser number. The second stage is brand (alternative) processing which considers the attributes simultaneously while allowing for tradeoffs among the attributes. This two-stage approach is then applied to the same real world data set as two single stage disaggregate models, logit and Maximum-Likelihood-Hierarchical (MLH) which are state of the art models representing the alternative and attribute processing approaches, respectively. The predictive accuracy of the two-stage approach compares favorably to the single stage models. In addition, it seems to offer diagnostic information that can provide managerial insights not found in the output of the single stage model.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by INFORMS in its journal Marketing Science.
Volume (Year): 6 (1987)
Issue (Month): 3 ()
choice modeling; hierarchical; brand choice; multistage decisions;
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Conlon, B.J. & Dellaert, B.G.C. & Soest, A.H.O. van, 2001. "Complexity and Accuracy in Consumer Choice: The Double Benefits of Being the Consistently Better Brand," Discussion Paper 2001-54, Tilburg University, Center for Economic Research.
- Fu, Shengfei & Florkowski, Wojciech J. & Nambiar, Padmanand Madhavan & Resurreccion, Anna V.A. & Chinnan, Manjeet S., 2013. "Household Consumption Characteristics of Cookies: The Case of Uganda," 2013 Annual Meeting, February 2-5, 2013, Orlando, Florida 142910, Southern Agricultural Economics Association.
- Cascetta, Ennio & Papola, Andrea, 2009. "Dominance among alternatives in random utility models," Transportation Research Part A: Policy and Practice, Elsevier, vol. 43(2), pages 170-179, February.
- Araña, Jorge E. & León, Carmelo J. & Hanemann, Michael W., 2008. "Emotions and decision rules in discrete choice experiments for valuing health care programmes for the elderly," Journal of Health Economics, Elsevier, vol. 27(3), pages 753-769, May.
- Kaplan, Sigal & Shiftan, Yoram & Bekhor, Shlomo, 2012. "Development and estimation of a semi-compensatory model with a flexible error structure," Transportation Research Part B: Methodological, Elsevier, vol. 46(2), pages 291-304.
- Manrai, Ajay K., 1995. "Mathematical models of brand choice behavior," European Journal of Operational Research, Elsevier, vol. 82(1), pages 1-17, April.
- Baltas, George & Doyle, Peter, 2001. "Random utility models in marketing research: a survey," Journal of Business Research, Elsevier, vol. 51(2), pages 115-125, February.
- Sigal Kaplan & Yoram Shiftan & Shlomo Bekhor, 2011. "A Semi-Compensatory Residential Choice Model With Flexible Error Structure," ERSA conference papers ersa10p65, European Regional Science Association.
- Gensch, Dennis H. & Soofi, Ehsan S., 1995. "An information-theoretic two-stage, two-decision rule, choice model," European Journal of Operational Research, Elsevier, vol. 81(2), pages 271-280, March.
- Cantillo, Víctor & Amaya, Johanna & Ortúzar, J. de D., 2010. "Thresholds and indifference in stated choice surveys," Transportation Research Part B: Methodological, Elsevier, vol. 44(6), pages 753-763, July.
- Beynon, Malcolm, 2002. "DS/AHP method: A mathematical analysis, including an understanding of uncertainty," European Journal of Operational Research, Elsevier, vol. 140(1), pages 148-164, July.
- Andrews, Rick L. & Manrai, Ajay K., 1998. "Feature-based elimination: Model and empirical comparison," European Journal of Operational Research, Elsevier, vol. 111(2), pages 248-267, December.
- Zhu, Wei & Timmermans, Harry, 2010. "Modeling simplifying information processing strategies in conjoint experiments," Transportation Research Part B: Methodological, Elsevier, vol. 44(6), pages 764-780, July.
- Basar, Gözen & Bhat, Chandra, 2004. "A parameterized consideration set model for airport choice: an application to the San Francisco Bay Area," Transportation Research Part B: Methodological, Elsevier, vol. 38(10), pages 889-904, December.
- Morrison, Pamela D. & Roberts, John H., 1998. "Matching Electronic Distribution Channels to Product Characteristics: The Role of Congruence in Consideration Set Formation," Journal of Business Research, Elsevier, vol. 41(3), pages 223-229, March.
- Davies, Antony & Cline, Thomas W., 2005. "A consumer behavior approach to modeling monopolistic competition," Journal of Economic Psychology, Elsevier, vol. 26(6), pages 797-826, December.
- Elrod, Terry & Johnson, Richard D. & White, Joan, 2004. "A new integrated model of noncompensatory and compensatory decision strategies," Organizational Behavior and Human Decision Processes, Elsevier, vol. 95(1), pages 1-19, September.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mirko Janc).
If references are entirely missing, you can add them using this form.