A Comparative Evaluation of Multiattribute Consumer Preference Models
In this paper the theory and estimation procedures for several consumer preference models are discussed. Predictive accuracy in the form of internal consistency of these models is compared in an empirical application. Consumer decision situations are classified into two classes: decisions under certainty and decisions under uncertainty. For each of the two classes of decision situations two modeling strategies have been used: statistical estimation and algebraic solution. An additive conjoint, an additive and a multiplicative measurable value, and an additive and a multiplicative utility model are considered. Our main finding is that the statistical estimation procedures outperform their algebraic counterparts on the criterion of predictive accuracy. The utility model provides better predictions for decisions under uncertainty than the widely used conjoint models. The relationship between models for decisions under certainty and decisions under uncertainty is discussed. It is shown how a conjoint or a measurable value function model can be transformed into a utility model with minimum additional information from the subjects. A concept of relative risk attitude is proposed to segment consumers by the degree of their risk aversion or risk seeking propensities.
Volume (Year): 30 (1984)
Issue (Month): 5 (May)
|Contact details of provider:|| Postal: |
Web page: http://www.informs.org/
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:inm:ormnsc:v:30:y:1984:i:5:p:543-561. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mirko Janc)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.