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Means matter, but variance matter too: Decomposing response latency influences on variance heterogeneity in stated preference experiments

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Author Info
John Rose ()
Iain Black ()
Abstract

Response time latencies have been shown to influence consumer’s choice behaviour in choice-based-conjoint studies. The literature has shown that response time latencies affect the mean outputs of parameter estimates derived from models of discrete choice. In this paper, we add further insight into the influences response time latencies have on such models by modelling latent response information associated with the variance of random parameter distributions through parameterisation of variance heterogeneity (or heteroskedasticity). We demonstrate that response time latencies influence not only the means of random parameter distributions, but also the variances, and that failure to account for both may result in incorrect model inferences being drawn. Copyright Springer Science + Business Media, LLC 2006

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File URL: http://hdl.handle.net/10.1007/s11002-006-8632-3
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Publisher Info
Article provided by Springer in its journal Marketing Letters.

Volume (Year): 17 (2006)
Issue (Month): 4 (December)
Pages: 295-310
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:kap:mktlet:v:17:y:2006:i:4:p:295-310

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Related research
Keywords: Choice modelling; Consumer choice behaviour; Response time latencies;

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  1. DeShazo, J. R. & Fermo, German, 2002. "Designing Choice Sets for Stated Preference Methods: The Effects of Complexity on Choice Consistency," Journal of Environmental Economics and Management, Elsevier, vol. 44(1), pages 123-143, July. [Downloadable!] (restricted)
  2. Brownstone, David & Bunch, David S. & Train, Kenneth, 2000. "Joint mixed logit models of stated and revealed preferences for alternative-fuel vehicles," Transportation Research Part B: Methodological, Elsevier, vol. 34(5), pages 315-338, June. [Downloadable!] (restricted)
  3. Bhat, Chandra & Zhao, Huimin, 2002. "The spatial analysis of activity stop generation," Transportation Research Part B: Methodological, Elsevier, vol. 36(6), pages 557-575, July. [Downloadable!] (restricted)
  4. Cooke, Alan D. J. & Mellers, Barbara A., 1995. "Attribute Range and Response Range: Limits of Compatibility in Multiattribute Judgment," Organizational Behavior and Human Decision Processes, Elsevier, vol. 63(2), pages 187-194, August. [Downloadable!] (restricted)
  5. Greene, William H. & Hensher, David A. & Rose, John, 2006. "Accounting for heterogeneity in the variance of unobserved effects in mixed logit models," Transportation Research Part B: Methodological, Elsevier, vol. 40(1), pages 75-92, January. [Downloadable!] (restricted)
  6. Daniel McFadden & Kenneth Train, 2000. "Mixed MNL models for discrete response," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 15(5), pages 447-470. [Downloadable!]
  7. Swait, Joffre & Adamowicz, Wiktor, 2001. " The Influence of Task Complexity on Consumer Choice: A Latent Class Model of Decision Strategy Switching," Journal of Consumer Research: An Interdisciplinary Quarterly, University of Chicago Press, vol. 28(1), pages 135-48, June.
  8. Bettman, James R & Luce, Mary Frances & Payne, John W, 1998. " Constructive Consumer Choice Processes," Journal of Consumer Research: An Interdisciplinary Quarterly, University of Chicago Press, vol. 25(3), pages 187-217, December.
  9. de Palma, Andre & Myers, Gordon M & Papageorgiou, Yorgos Y, 1994. "Rational Choice under an Imperfect Ability to Choose," American Economic Review, American Economic Association, vol. 84(3), pages 419-40, June. [Downloadable!] (restricted)
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