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Matching reality: A basket and expenditure based choice experiment with sensory preferences

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  • Neill, Clinton L.
  • Lahne, Jacob

Abstract

This article introduces a basket and expenditure based choice experiment design to elicit consumer preferences for multiple products. This design is utilized to imitate a more realistic shopping scenario for consumers when choosing among many different products simultaneously. This approach allows participants to choose both multiple items, in this case vegetables, and related quantities/expenditures to place in a basket of goods. We provide an application of the experimental design to a vegetable choice experiment. This is done in conjunction with a sensory experiment to provide a contextual component to the experiment and econometric model. This type of experiment lends itself to the use of the Multiple Discrete-Continuous Extreme Value (MDCEV) class of models. More specifically, we use the extended version of the MDCEV model proposed by Palma and Hess (2020) that relaxes the need for a budget while also accounting for substitution and complementarity among products. We find that the proposed design and class of econometric methods present a flexible way to analyze consumer choice when the desire is to elicit preferences for a basket of goods rather than simple discrete alternatives or attributes.

Suggested Citation

  • Neill, Clinton L. & Lahne, Jacob, 2022. "Matching reality: A basket and expenditure based choice experiment with sensory preferences," Journal of choice modelling, Elsevier, vol. 44(C).
    • Handle: RePEc:eee:eejocm:v:44:y:2022:i:c:s1755534522000264
    DOI: 10.1016/j.jocm.2022.100369
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    References listed on IDEAS

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    Cited by:

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    3. Hernandez, Jose Ignacio & van Cranenburgh, Sander & Chorus, Caspar & Mouter, Niek, 2023. "Data-driven assisted model specification for complex choice experiments data: Association rules learning and random forests for Participatory Value Evaluation experiments," Journal of choice modelling, Elsevier, vol. 46(C).

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    More about this item

    Keywords

    Consumer choice; Sensory; Basket and expenditure based choice experiment; Vegetables;
    All these keywords.

    JEL classification:

    • C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis

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