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Categories shape preferences: A model of taste heterogeneity arising from categorization of alternatives

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  • Swait, Joffre
  • Brigden, Neil
  • Johnson, Richard D.

Abstract

We propose and test a choice model based on the notion that the category an alternative is perceived to fall into determines the attribute importance weights used to evaluate that alternative. For example, space is more important than fuel economy for an SUV, but the opposite is true for a commuter car. In our model, the weights associated with different categories are stable, but categorization decisions can be subject to significant context effects; that is to say, we suggest that context effects are due to task interpretation rather than to preference construction. We demonstrate that the model can correctly detect experimental manipulations of product categorizations, supporting its suitability as a tool to capture preference heterogeneity arising from categorizations outcomes. The model is then employed to analyze data from a discrete choice experiment and the results provide rich behavioral insights into how categorization influences choice processes.

Suggested Citation

  • Swait, Joffre & Brigden, Neil & Johnson, Richard D., 2014. "Categories shape preferences: A model of taste heterogeneity arising from categorization of alternatives," Journal of choice modelling, Elsevier, vol. 13(C), pages 3-23.
  • Handle: RePEc:eee:eejocm:v:13:y:2014:i:c:p:3-23
    DOI: 10.1016/j.jocm.2014.05.003
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    References listed on IDEAS

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    Cited by:

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    2. Aguiar, Victor H., 2017. "Random categorization and bounded rationality," Economics Letters, Elsevier, vol. 159(C), pages 46-52.
    3. Santi, Éverton & Aloise, Daniel & Blanchard, Simon J., 2016. "A model for clustering data from heterogeneous dissimilarities," European Journal of Operational Research, Elsevier, vol. 253(3), pages 659-672.
    4. Thiene, Mara & Scarpa, Riccardo & Longo, Alberto & Hutchinson, George, "undated". "Front of Pack Food Labels and dietary choice determinants: what works and for whom?," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 261225, Agricultural and Applied Economics Association.
    5. Swait, J. & de Bekker-Grob, E.W., 2022. "A discrete choice model implementing gist-based categorization of alternatives, with applications to patient preferences for cancer screening and treatment," Journal of Health Economics, Elsevier, vol. 85(C).
    6. Guyt, Jonne & Gijsbrechts, Els, 2018. "On consumer choice patterns and the net impact of feature promotions," International Journal of Research in Marketing, Elsevier, vol. 35(3), pages 490-508.
    7. Habtamu Tilahun Kassahun & Bo Jellesmark Thorsen & Joffre Swait & Jette Bredahl Jacobsen, 2020. "Social Cooperation in the Context of Integrated Private and Common Land Management," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 75(1), pages 105-136, January.
    8. Thiene, Mara & Scarpa, Riccardo & Longo, Alberto & Hutchinson, William George, 2018. "Types of front of pack food labels: Do obese consumers care? Evidence from Northern Ireland," Food Policy, Elsevier, vol. 80(C), pages 84-102.
    9. Guyt, Jonne, 2015. "Consumer choice models on the effect of promotions in retailing," Other publications TiSEM c310f652-d725-4764-aac7-b, Tilburg University, School of Economics and Management.

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