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On heterogeneous latent class models with applications to the analysis of rating scores

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  • Bertrand, Aurelie
  • Hafner, Christian

Abstract

Discovering the preferences and the behaviour of consumers is a key challenge in mar- keting. Information about such topics can be gathered through surveys in which the respondents must assign a score to a number of items. In this article we suggest a strat- egy to analyze such data and achieve this objective: it consists in identifying groups of consumers whose response patterns are similar and characterizing them in terms of pref- erences and covariates. We use latent class models allowing for heterogeneity of both latent class and within-class probabilities across individuals. We illustrate the proposed methodology using data about the preferences of Belgian households for supermarkets.
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Suggested Citation

  • Bertrand, Aurelie & Hafner, Christian, 2014. "On heterogeneous latent class models with applications to the analysis of rating scores," LIDAM Reprints ISBA 2014027, Université catholique de Louvain, Institute of Statistics, Biostatistics and Actuarial Sciences (ISBA).
  • Handle: RePEc:aiz:louvar:2014027
    Note: In : Computational Statistics, vol. 29, no. 1-2, p. 307-330 (2014)
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    Cited by:

    1. Sunil Kumar & Zakir Husain & Diganta Mukherjee, 2015. "Assessing Consistency of Consumer Confidence Data using Dynamic Latent Class Analysis," Papers 1509.01215, arXiv.org.
    2. Bart Neuts & João Romão & Peter Nijkamp & Asami Shikida, 2016. "Market segmentation and their potential economic impacts in an ecotourism destination," Tourism Economics, , vol. 22(4), pages 793-808, August.
    3. Kumar, Sunil & Husain, Zakir & Mukherjee, Diganta, 2017. "Assessing consistency of consumer confidence data using latent class analysis with time factor," Economic Analysis and Policy, Elsevier, vol. 55(C), pages 35-46.

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