IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Log in (now much improved!) to save this article

Capturing Consumption Flexibility in Assortment Choice from Scanner Panel Data

  • Liang Guo

    ()

    (Department of Marketing, Hong Kong University of Science and Technology, Clear Water Bay, Kowloon, Hong Kong; and Cheung Kong Graduate School of Business, 100738 Beijing, China)

This study develops and estimates a model to empirically identify two behavioral effects (namely consumption flexibility and state dependence) that may underlie temporal and horizontal assortment choice, using scanner panel data where consumption information is unavailable. The proposed approach permits a consumer's consumption utility to be dependent on previous consumptions, thus capturing state dependence both across purchase occasions and within horizontal assortments. Moreover, consumers' purchase and consumption decisions are modeled at two distinctive and sequentially related stages, which allows for incorporating the effect of consumption flexibility. The model is estimated on scanner panel data of yogurt purchase. It is found that the two captured effects provide strong empirical support with face validity for the temporal and horizontal assortment choice patterns observed in the data. The behavioral insights derived from estimating the proposed model can also be translated into significant managerial implications.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://dx.doi.org/10.1287/mnsc.1100.1200
Download Restriction: no

Article provided by INFORMS in its journal Management Science.

Volume (Year): 56 (2010)
Issue (Month): 10 (October)
Pages: 1815-1832

as
in new window

Handle: RePEc:inm:ormnsc:v:56:y:2010:i:10:p:1815-1832
Contact details of provider: Postal:
7240 Parkway Drive, Suite 300, Hanover, MD 21076 USA

Phone: +1-443-757-3500
Fax: 443-757-3515
Web page: http://www.informs.org/
Email:


More information through EDIRC

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as in new window
  1. Jean-Pierre Dubé, 2004. "Multiple Discreteness and Product Differentiation: Demand for Carbonated Soft Drinks," Marketing Science, INFORMS, vol. 23(1), pages 66-81, September.
  2. Igal Hendel, 1999. "Estimating Multiple-Discrete Choice Models: An Application to Computerization Returns," Review of Economic Studies, Oxford University Press, vol. 66(2), pages 423-446.
  3. John W. Walsh, 1995. "Flexibility in Consumer Purchasing for Uncertain Future Tastes," Marketing Science, INFORMS, vol. 14(2), pages 148-165.
  4. Jinhong Xie & Steven M. Shugan, 2001. "Electronic Tickets, Smart Cards, and Online Prepayments: When and How to Advance Sell," Marketing Science, INFORMS, vol. 20(3), pages 219-243, June.
  5. McAlister, Leigh, 1982. " A Dynamic Attribute Satiation Model of Variety-Seeking Behavior," Journal of Consumer Research, Oxford University Press, vol. 9(2), pages 141-50, September.
  6. Hauser, John R & Wernerfelt, Birger, 1990. " An Evaluation Cost Model of Consideration Sets," Journal of Consumer Research, Oxford University Press, vol. 16(4), pages 393-408, March.
  7. Tülin Erdem, 1996. "A Dynamic Analysis of Market Structure Based on Panel Data," Marketing Science, INFORMS, vol. 15(4), pages 359-378.
  8. Mayhew, Glenn E & Winer, Russell S, 1992. " An Empirical Analysis of Internal and External Reference Prices Using Scanner Data," Journal of Consumer Research, Oxford University Press, vol. 19(1), pages 62-70, June.
  9. Peter M. Guadagni & John D. C. Little, 1983. "A Logit Model of Brand Choice Calibrated on Scanner Data," Marketing Science, INFORMS, vol. 2(3), pages 203-238.
  10. Liang Guo, 2006. "Consumption Flexibility, Product Configuration, and Market Competition," Marketing Science, INFORMS, vol. 25(2), pages 116-130, 03-04.
  11. Tülin Erdem & Michael P. Keane, 1996. "Decision-Making Under Uncertainty: Capturing Dynamic Brand Choice Processes in Turbulent Consumer Goods Markets," Marketing Science, INFORMS, vol. 15(1), pages 1-20.
  12. James M. Lattin, 1987. "A Model of Balanced Choice Behavior," Marketing Science, INFORMS, vol. 6(1), pages 48-65.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:inm:ormnsc:v:56:y:2010:i:10:p:1815-1832. 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.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.