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Accounting for Taste Heterogeneity in Purchase Channel Intention Modeling: An Example from Northern California for Book Purchases

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  • Tang, Wei
  • Mokhtarian, Patricia L

Abstract

This study uses latent class modeling (LCM) to explore the effects of channel-specific perceptions, along with other variables, on purchase channel intention. Using data on book purchases collected from an Internet-based survey of two university towns in Northern California, we develop a latent class model with two segments (final N=373). Age turns out to be the only observed determinant of class membership, and in the intention model, the mostly-younger segment is more cost-sensitive and the mostly-older segment appears to be more conveni¬ence-sensitive. The results clearly demonstrate the effects on purchase intention of chan¬nel-specific perceptions, purchase experience, context and socio¬demographics. Comparing the LCM to the unsegmented model and to models deterministically segmented on age indicates that the LCM is slightly better from the statistical perspective, but arguably weaker from the conceptual perspective. However, a model that interacts age with the explanatory variables in the conventional unsegmented model outperforms all the others (though not overwhelmingly so), including the LCM. Thus, our results suggest that using LCM as an initial stage in model exploration allows us to more intelligently specify a model where the taste heterogeneity is (potentially) specified deterministically in the end, which often yields a more parsimonious model, and may in fact fit the data better.

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Bibliographic Info

Paper provided by Institute of Transportation Studies, UC Davis in its series Institute of Transportation Studies, Working Paper Series with number qt3v25m8dc.

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Date of creation: 01 Oct 2009
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Handle: RePEc:cdl:itsdav:qt3v25m8dc

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Keywords: UCD-ITS-RP-09-28; Engineering;

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References

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  1. Scarpa, Riccardo & Drucker, Adam G. & Anderson, Simon & Ferraes-Ehuan, Nancy & Gomez, Veronica & Risopatron, Carlos R. & Rubio-Leonel, Olga, 2003. "Valuing genetic resources in peasant economies: the case of 'hairless' creole pigs in Yucatan," Ecological Economics, Elsevier, vol. 45(3), pages 427-443, July.
  2. Patricia L Mokhtarian & David T Ory & Xinyu Cao, 2009. "Shopping-related attitudes: a factor and cluster analysis of Northern California shoppers," Environment and Planning B: Planning and Design, Pion Ltd, London, vol. 36(2), pages 204-228, March.
  3. Greene, William H. & Hensher, David A., 2003. "A latent class model for discrete choice analysis: contrasts with mixed logit," Transportation Research Part B: Methodological, Elsevier, vol. 37(8), pages 681-698, September.
  4. Chen, Lei-Da & Tan, Justin, 2004. "Technology Adaptation in E-commerce:: Key Determinants of Virtual Stores Acceptance," European Management Journal, Elsevier, vol. 22(1), pages 74-86, February.
  5. W.R Buckinx & D. Van Den Poel, 2003. "Predicting Online Purchasing Behavior," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 03/195, Ghent University, Faculty of Economics and Business Administration.
  6. Jordan Louviere & Kenneth Train & Moshe Ben-Akiva & Chandra Bhat & David Brownstone & Trudy Cameron & Richard Carson & J. Deshazo & Denzil Fiebig & William Greene & David Hensher & Donald Waldman, 2005. "Recent Progress on Endogeneity in Choice Modeling," Marketing Letters, Springer, vol. 16(3), pages 255-265, December.
  7. Patricia Mokhtarian, 2004. "A conceptual analysis of the transportation impacts of B2C e-commerce," Transportation, Springer, vol. 31(3), pages 257-284, August.
  8. González-Benito, Óscar, 2004. "Random effects choice models: seeking latent predisposition segments in the context of retail store format selection," Omega, Elsevier, vol. 32(2), pages 167-177, April.
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  11. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521766555, October.
  12. Ory, David T & Mokhtarian, Patricia L, 2007. "Description of a Northern California Shopping Survey Data Collection Effort," Institute of Transportation Studies, Working Paper Series qt39w9w743, Institute of Transportation Studies, UC Davis.
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  14. Joan Walker & Jieping Li, 2007. "Latent lifestyle preferences and household location decisions," Journal of Geographical Systems, Springer, vol. 9(1), pages 77-101, April.
  15. Bhatnagar, Amit & Ghose, Sanjoy, 2004. "Segmenting consumers based on the benefits and risks of Internet shopping," Journal of Business Research, Elsevier, vol. 57(12), pages 1352-1360, December.
  16. Amery Wu & Bruno Zumbo, 2008. "Understanding and Using Mediators and Moderators," Social Indicators Research, Springer, vol. 87(3), pages 367-392, July.
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Cited by:
  1. Radoslaw Macik & Dorota Macik, 2011. "Physical vs. Virtual Information Search and Purchase in the Buying Behavior of Polish Young Consumers," MIC 2011: Managing Sustainability? Proceedings of the 12th International Conference, Portorož, 23–26 November 2011 [Selected Papers], University of Primorska, Faculty of Management Koper.
  2. Radoslaw Macik & Dorota Macik & Monika Nalewajek, 2013. "Consumer Preferences for Retail Format Choice: The Case of Polish Consumers," Active Citizenship by Knowledge Management & Innovation: Proceedings of the Management, Knowledge and Learning International Conference 2013, ToKnowPress.
  3. Radoslaw Macik & Dorota Macik & Monika Nalewajek, 2013. "Consumer’s Perception of Retail Formats: Case of Poland," Diversity, Technology, and Innovation for Operational Competitiveness: Proceedings of the 2013 International Conference on Technology Innovation and Industrial Management, ToKnowPress.

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