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Means matter, but variance matter too: Decomposing response latency influences on variance heterogeneity in stated preference experiments

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  • John Rose

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  • Iain Black

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Abstract

Response time latencies have been shown to influence consumer’s choice behaviour in choice-based-conjoint studies. The literature has shown that response time latencies affect the mean outputs of parameter estimates derived from models of discrete choice. In this paper, we add further insight into the influences response time latencies have on such models by modelling latent response information associated with the variance of random parameter distributions through parameterisation of variance heterogeneity (or heteroskedasticity). We demonstrate that response time latencies influence not only the means of random parameter distributions, but also the variances, and that failure to account for both may result in incorrect model inferences being drawn. Copyright Springer Science + Business Media, LLC 2006

Suggested Citation

  • John Rose & Iain Black, 2006. "Means matter, but variance matter too: Decomposing response latency influences on variance heterogeneity in stated preference experiments," Marketing Letters, Springer, vol. 17(4), pages 295-310, December.
  • Handle: RePEc:kap:mktlet:v:17:y:2006:i:4:p:295-310
    DOI: 10.1007/s11002-006-8632-3
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    References listed on IDEAS

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    1. Cooke, Alan D. J. & Mellers, Barbara A., 1995. "Attribute Range and Response Range: Limits of Compatibility in Multiattribute Judgment," Organizational Behavior and Human Decision Processes, Elsevier, vol. 63(2), pages 187-194, August.
    2. DeShazo, J. R. & Fermo, German, 2002. "Designing Choice Sets for Stated Preference Methods: The Effects of Complexity on Choice Consistency," Journal of Environmental Economics and Management, Elsevier, vol. 44(1), pages 123-143, July.
    3. Swait, Joffre & Adamowicz, Wiktor, 2001. " The Influence of Task Complexity on Consumer Choice: A Latent Class Model of Decision Strategy Switching," Journal of Consumer Research, Oxford University Press, vol. 28(1), pages 135-148, June.
    4. Bettman, James R & Luce, Mary Frances & Payne, John W, 1998. " Constructive Consumer Choice Processes," Journal of Consumer Research, Oxford University Press, vol. 25(3), pages 187-217, December.
    5. Greene, William H. & Hensher, David A. & Rose, John, 2006. "Accounting for heterogeneity in the variance of unobserved effects in mixed logit models," Transportation Research Part B: Methodological, Elsevier, vol. 40(1), pages 75-92, January.
    6. de Palma, Andre & Myers, Gordon M & Papageorgiou, Yorgos Y, 1994. "Rational Choice under an Imperfect Ability to Choose," American Economic Review, American Economic Association, vol. 84(3), pages 419-440, June.
    7. Brownstone, David & Bunch, David S. & Train, Kenneth, 2000. "Joint mixed logit models of stated and revealed preferences for alternative-fuel vehicles," Transportation Research Part B: Methodological, Elsevier, vol. 34(5), pages 315-338, June.
    8. Daniel McFadden & Kenneth Train, 2000. "Mixed MNL models for discrete response," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 15(5), pages 447-470.
    9. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521747387, April.
    10. Bhat, Chandra & Zhao, Huimin, 2002. "The spatial analysis of activity stop generation," Transportation Research Part B: Methodological, Elsevier, vol. 36(6), pages 557-575, July.
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    Citations

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    Cited by:

    1. Johnson, F. Reed & Ozdemir, Semra & Phillips, Kathryn A., 2010. "Effects of simplifying choice tasks on estimates of taste heterogeneity in stated-choice surveys," Social Science & Medicine, Elsevier, vol. 70(2), pages 183-190, January.
    2. Tobias Börger, 2016. "Are Fast Responses More Random? Testing the Effect of Response Time on Scale in an Online Choice Experiment," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 65(2), pages 389-413, October.
    3. Mikołaj Czajkowski & Marek Giergiczny & William H. Greene, 2012. "Learning and Fatigue Effects Revisited. The Impact of Accounting for Unobservable Preference and Scale Heterogeneity on Perceived Ordering Effects in Multiple Choice Task Discrete Choice Experiments," Working Papers 2012-08, Faculty of Economic Sciences, University of Warsaw.
    4. Börjesson, Maria & Fosgerau, Mogens, 2015. "Response time patterns in a stated choice experiment," Journal of choice modelling, Elsevier, vol. 14(C), pages 48-58.
    5. Richard Yao & Riccardo Scarpa & John Rose & James Turner, 2015. "Experimental Design Criteria and Their Behavioural Efficiency: An Evaluation in the Field," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 62(3), pages 433-455, November.
    6. Crabbe, M. & Vandebroek, M., 2012. "Improving the efficiency of individualized designs for the mixed logit choice model by including covariates," Computational Statistics & Data Analysis, Elsevier, vol. 56(6), pages 2059-2072.
    7. repec:eee:jeeman:v:88:y:2018:i:c:p:18-34 is not listed on IDEAS
    8. Mikolaj Czajkowski & Marek Giergiczny & William H. Greene, 2014. "Learning and Fatigue Effects Revisited: Investigating the Effects of Accounting for Unobservable Preference and Scale Heterogeneity," Land Economics, University of Wisconsin Press, vol. 90(2), pages 324-351.
    9. Liebe, Ulf & Glenk, Klaus & Oehlmann, Malte & Meyerhoff, Jürgen, 2015. "Does the use of mobile devices (tablets and smartphones) affect survey quality and choice behaviour in web surveys?," Journal of choice modelling, Elsevier, vol. 14(C), pages 17-31.
    10. Marsh, Dan & Phillips, Yvonne, 2012. "Difficult Choices: What Influences the Error Variance in a Choice Experiment," 2012 Conference, August 31, 2012, Nelson, New Zealand 139651, New Zealand Agricultural and Resource Economics Society.
    11. repec:eee:ecolec:v:148:y:2018:i:c:p:36-42 is not listed on IDEAS
    12. Hess, Stephane & Stathopoulos, Amanda, 2013. "Linking response quality to survey engagement: A combined random scale and latent variable approach," Journal of choice modelling, Elsevier, vol. 7(C), pages 1-12.
    13. Hess, Stephane & Rose, John M., 2009. "Allowing for intra-respondent variations in coefficients estimated on repeated choice data," Transportation Research Part B: Methodological, Elsevier, vol. 43(6), pages 708-719, July.

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