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Designing Discrete Choice Experiments: Do Optimal Designs Come at a Price?

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  • Jordan J. Louviere
  • Towhidul Islam
  • Nada Wasi
  • Deborah Street
  • Leonie Burgess

Abstract

In discrete choice experiments, design decisions are crucial for determining data quality and costs. While high statistical efficiency designs are desirable, they may come at a price if they increase the cognitive burden for respondents. We address this problem by designing 44 experiments that systematically vary numbers of attributes and attribute level differences. Our results for two product categories suggest that respondents systematically are less consistent in answering choice questions as statistical efficiency increases. This relationship holds regardless of the number of attributes and is statistically significant even if one accommodates preference heterogeneity. Implications for practice and future research are discussed. (c) 2008 by JOURNAL OF CONSUMER RESEARCH, Inc..

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File URL: http://www.journals.uchicago.edu/doi/pdf/10.1086/586913
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Bibliographic Info

Article provided by University of Chicago Press in its journal Journal of Consumer Research.

Volume (Year): 35 (2008)
Issue (Month): 2 (03)
Pages: 360-375

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Handle: RePEc:ucp:jconrs:v:35:y:2008:i:2:p:360-375

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Web page: http://www.journals.uchicago.edu/JCR/

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Cited by:
  1. Pires Gonçalves, Ricardo, 2008. "Consumer Behavior: Product Characteristics and Quality Perception," MPRA Paper 11142, University Library of Munich, Germany.
  2. Michaels-Igbokwe, Christine & Lagarde, Mylene & Cairns, John & Terris-Prestholt, Fern, 2014. "Using decision mapping to inform the development of a stated choice survey to elicit youth preferences for sexual and reproductive health and HIV services in rural Malawi," Social Science & Medicine, Elsevier, vol. 105(C), pages 93-102.
  3. Mckendree, Melissa G.S. & Olynk Widmar, Nicole & Ortega, David L. & Foster, Kenneth A., 2013. "Consumer Preferences for Verified Pork-Rearing Practices in the Production of Ham Products," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 38(3), December.
  4. Stephane Hess & John Rose, 2012. "Can scale and coefficient heterogeneity be separated in random coefficients models?," Transportation, Springer, vol. 39(6), pages 1225-1239, November.
  5. J. DeShazo & Trudy Cameron & Manrique Saenz, 2009. "The Effect of Consumers’ Real-World Choice Sets on Inferences from Stated Preference Surveys," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 42(3), pages 319-343, March.
  6. Tonsor, Glynn T. & Wolf, Christopher A., 2011. "On mandatory labeling of animal welfare attributes," Food Policy, Elsevier, vol. 36(3), pages 430-437, June.
  7. Emily Lancsar & Jordan Louviere, 2008. "Conducting Discrete Choice Experiments to Inform Healthcare Decision Making," PharmacoEconomics, Springer, vol. 26(8), pages 661-677, August.
  8. Han, Qi & Dellaert, Benedict G.C. & Raaij, W. Fred van & Timmermans, Harry J.P., 2014. "Publicly announced access recommendations and consumers' service time choices with uncertain congestion," Journal of choice modelling, Elsevier, vol. 10(C), pages 1-10.
  9. Gensler, Sonja & Hinz, Oliver & Skiera, Bernd & Theysohn, Sven, 2012. "Willingness-to-pay estimation with choice-based conjoint analysis: Addressing extreme response behavior with individually adapted designs," European Journal of Operational Research, Elsevier, vol. 219(2), pages 368-378.
  10. Marsh, Dan & Phillips, Yvonne, 2012. "Difficult Choices: What Influences the Error Variance in a Choice Experiment," 2012 Conference, August 31, 2012, Nelson, New Zealand 139651, New Zealand Agricultural and Resource Economics Society.
  11. Michael P. Keane & Nada Wasi, 2013. "The Structure of Consumer Taste Heterogeneity in Revealed vs. Stated Preference Data," Economics Papers 2013-W10, Economics Group, Nuffield College, University of Oxford.
  12. Bliemer, Michiel C.J. & Rose, John M., 2011. "Experimental design influences on stated choice outputs: An empirical study in air travel choice," Transportation Research Part A: Policy and Practice, Elsevier, vol. 45(1), pages 63-79, January.
  13. John Bridges & Elizabeth Kinter & Annette Schmeding & Ina Rudolph & Axel Mühlbacher, 2011. "Can Patients Diagnosed with Schizophrenia Complete Choice-Based Conjoint Analysis Tasks?," The Patient: Patient-Centered Outcomes Research, Springer, vol. 4(4), pages 267-275, December.
  14. Alessandro Mengoni & Chiara Seghieri & Sabina Nuti, 2013. "The application of discrete choice experiments in health economics: a systematic review of the literature," Working Papers 201301, Scuola Superiore Sant'Anna of Pisa, Istituto di Management.
  15. Tonsor, Glynn T., 2010. "Consumer Food Safety Perceptions: Do they Differ across Products, Species, and Specific Risks?," 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado 61044, Agricultural and Applied Economics Association.
  16. McKendree, Melissa G.S. & Ortega, David L. & Widmar, Nicole Olynk & Wang, H. Holly, 2013. "Consumer Perceptions of Seafood Industries in the Wake of the Deepwater Horizon Oil Spill and Fukushima Daiichi Nuclear Disaster," Staff Papers 155582, Michigan State University, Department of Agricultural, Food, and Resource Economics.
  17. Schumacher, Tucker & Schroeder, Ted C. & Tonsor, Glynn T., 2012. "Willingness-to-Pay for Calf Health Programs and Certification Agents," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 44(02), May.
  18. Tonsor, Glynn T. & Wolf, Christopher & Olynk, Nicole, 2009. "Consumer voting and demand behavior regarding swine gestation crates," Food Policy, Elsevier, vol. 34(6), pages 492-498, December.
  19. Boxall, Peter & Adamowicz, W.L. & Moon, Amanda, 2009. "Complexity in choice experiments: choice of the status quo alternative and implications for welfare measurement," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 53(4), December.
  20. Khachatryan, Hayk & Joireman, Jeff & Casavant, Ken, 2013. "The Effects of Intertemporal Considerations on Consumer Preferences for Biofuels," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150334, Agricultural and Applied Economics Association.

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