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Ownership patterns for durable goods and financial assets: a Rasch analysis


  • Geoffrey Soutar
  • Steven Cornish-Ward


There has been considerable discussion about the way in which consumers purchase durable and financial products and a number of modelling procedures have been used to examine this issue. The present paper outlines a study that used a new and more general scaling approach (the Rasch model) for this purpose, using a larger than usual set of durable goods, as well as a set of financial products. It was found that both sets of products could be analysed using the Rasch model and that there was an inherent order in the data. Further, respondents in the sample followed the same order, suggesting that examining subgroups, as has been done in the past, would be of little use. A set of respondents' backgroundcharacteristics was also collected that measured people's ability and willingness to purchase. It was found that high levels of ownership were related to people's ability to purchase rather than to their willingness to purchase. This suggests that the macro, rather than the micro, environment is likely to be the key to sales for both categories of products.

Suggested Citation

  • Geoffrey Soutar & Steven Cornish-Ward, 1997. "Ownership patterns for durable goods and financial assets: a Rasch analysis," Applied Economics, Taylor & Francis Journals, vol. 29(7), pages 903-911.
  • Handle: RePEc:taf:applec:v:29:y:1997:i:7:p:903-911
    DOI: 10.1080/000368497326561

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    References listed on IDEAS

    1. Gilbert Ghez & Gary S. Becker, 1975. "The Allocation of Time and Goods over the Life Cycle," NBER Books, National Bureau of Economic Research, Inc, number ghez75-1, April.
    2. Gilbert Ghez & Gary S. Becker, 1975. "A Theory of the Allocation of Time and Goods Over the Life Cycle," NBER Chapters, in: The Allocation of Time and Goods over the Life Cycle, pages 1-45, National Bureau of Economic Research, Inc.
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    1. Alexandra Ganglmair-Wooliscroft & Ben Wooliscroft, 2019. "Well-Being and Everyday Ethical Consumption," Journal of Happiness Studies, Springer, vol. 20(1), pages 141-163, January.
    2. Paas, Leonard J. & Bijmolt, Tammo H.A. & Vermunt, Jeroen K., 2007. "Acquisition patterns of financial products: A longitudinal investigation," Journal of Economic Psychology, Elsevier, vol. 28(2), pages 229-241, April.
    3. Ngwenya, Mthunzi A. & Paas, Leonard J., 2012. "Lifecycle effects on consumer financial product portfolios in South Africa: An exploratory analysis of four ethnic groups," Journal of Economic Psychology, Elsevier, vol. 33(1), pages 8-18.
    4. Galeotti, Marzio & Rubashkina, Yana & Salini, Silvia & Verdolini, Elena, 2018. "Environmental policy performance and its determinants: Application of a three-level random intercept model," Energy Policy, Elsevier, vol. 114(C), pages 134-144.
    5. Hector J. Villarreal & Ricardo Cantú, "undated". "Do Walmartians Ruled? The political power of an emerging middle class in Mexico," Working Papers 20081, Escuela de Graduados en Administración Pública y Políticas Públicas, Campus Monterrey, revised Jun 2007.
    6. Alexandra Ganglmair-Wooliscroft & Ben Wooliscroft, 2016. "Ethical Holiday Behavior, Wellbeing and Orientations to Happiness," Applied Research in Quality of Life, Springer;International Society for Quality-of-Life Studies, vol. 11(1), pages 83-103, March.
    7. Paas, L.J. & Bijmolt, T.H.A. & Vermunt, J.K., 2004. "Extending dynamic segmentation with lead generation : A latent class Markov analysis of financial product portfolios," Discussion Paper 2004-1, Tilburg University, Center for Economic Research.
    8. Ann Yang, 2013. "Decision Making for Individual Investors: A Measurement of Latent Difficulties," Journal of Financial Services Research, Springer;Western Finance Association, vol. 44(3), pages 303-329, December.
    9. Bijmolt, T.H.A. & Paas, L.J. & Vermunt, J.K., 2004. "Country and consumer segmentation : Multi-level latent class analysis of financial product ownership," Other publications TiSEM fb506162-d125-4091-9083-9, Tilburg University, School of Economics and Management.
    10. A. Prinzie & D. Van Den Poel, 2007. "Predicting home-appliance acquisition sequences: Markov/Markov for Discrimination and survival analysis for modeling sequential information in NPTB models," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 07/442, Ghent University, Faculty of Economics and Business Administration.
    11. Ganglmair-Wooliscroft, Alexandra & Wooliscroft, Ben, 2016. "Diffusion of innovation: The case of ethical tourism behavior," Journal of Business Research, Elsevier, vol. 69(8), pages 2711-2720.
    12. Bijmolt, T.H.A. & Paas, L.J. & Vermunt, J.K., 2003. "Country and Consumer Segmentation : Multi-Level Latent Class Analysis of Financial Product Ownership," Discussion Paper 2003-75, Tilburg University, Center for Economic Research.
    13. Leonard J. Paas & Jeroen K. Vermunt & Tammo H. A. Bijmolt, 2007. "Discrete time, discrete state latent Markov modelling for assessing and predicting household acquisitions of financial products," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 170(4), pages 955-974, October.

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