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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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Author Info

  • 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 convenience-sensitive. The results clearly demonstrate the effects on purchase intention of channel-specific perceptions, purchase experience, context and sociodemographics. 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 qt9mg5s5g8.

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Date of creation: 01 Oct 2009
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Handle: RePEc:cdl:itsdav:qt9mg5s5g8

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Related research

Keywords: Internet/online shopping; store shopping; taste heterogeneity; latent class model; market segmentation; Social and Behavioral Sciences;

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References

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  1. Ory, David T & Mokhtarian, Patricia L, 2007. "Description of a Northern California Shopping Survey Data Collection Effort," Institute of Transportation Studies, Working Paper Series qt7k9413nw, Institute of Transportation Studies, UC Davis.
  2. repec:ucp:bkecon:9780226527826 is not listed on IDEAS
  3. Kenneth Train, 2003. "Discrete Choice Methods with Simulation," Online economics textbooks, SUNY-Oswego, Department of Economics, number emetr2, January.
  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. 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.
  6. Cao, XinYu & Mokhtarian, Patricia L, 2005. "The Intended and Actual Adoption of Online Purchasing: A Brief Review of Recent Literature," Institute of Transportation Studies, Working Paper Series qt095934s0, Institute of Transportation Studies, UC Davis.
  7. 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.
  8. 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.
  9. Patricia Mokhtarian, 2004. "A conceptual analysis of the transportation impacts of B2C e-commerce," Transportation, Springer, vol. 31(3), pages 257-284, August.
  10. 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.
  11. Van den Poel, Dirk & Buckinx, Wouter, 2005. "Predicting online-purchasing behaviour," European Journal of Operational Research, Elsevier, vol. 166(2), pages 557-575, October.
  12. Joan Walker & Jieping Li, 2007. "Latent lifestyle preferences and household location decisions," Journal of Geographical Systems, Springer, vol. 9(1), pages 77-101, April.
  13. Amery Wu & Bruno Zumbo, 2008. "Understanding and Using Mediators and Moderators," Social Indicators Research, Springer, vol. 87(3), pages 367-392, July.
  14. Van den Poel, Dirk & Leunis, Joseph, 1999. "Consumer Acceptance of the Internet as a Channel of Distribution," Journal of Business Research, Elsevier, vol. 45(3), pages 249-256, July.
  15. 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.
  16. 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.
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Cited by:
  1. 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.
  2. 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.
  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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