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Accounting for Taste Heterogeneity in Purchase Channel Intention Modeling: An Example from Northern California for Book Purchases

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  • Tang, Wei
  • Mokhtarian, Patricia L

Abstract

This study uses latent class modeling (LCM) to explore the effects of channel-specific perceptions, along with other variables, on purchase channel intention. Using data on book purchases collected from an Internet-based survey of two university towns in Northern California, we develop a latent class model with two segments (final N=373). Age turns out to be the only observed determinant of class membership, and in the intention model, the mostly-younger segment is more cost-sensitive and the mostly-older segment appears to be more conveni¬ence-sensitive. The results clearly demonstrate the effects on purchase intention of chan¬nel-specific perceptions, purchase experience, context and socio¬demographics. Comparing the LCM to the unsegmented model and to models deterministically segmented on age indicates that the LCM is slightly better from the statistical perspective, but arguably weaker from the conceptual perspective. However, a model that interacts age with the explanatory variables in the conventional unsegmented model outperforms all the others (though not overwhelmingly so), including the LCM. Thus, our results suggest that using LCM as an initial stage in model exploration allows us to more intelligently specify a model where the taste heterogeneity is (potentially) specified deterministically in the end, which often yields a more parsimonious model, and may in fact fit the data better.

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  • Tang, Wei & Mokhtarian, Patricia L, 2009. "Accounting for Taste Heterogeneity in Purchase Channel Intention Modeling: An Example from Northern California for Book Purchases," Institute of Transportation Studies, Working Paper Series qt3v25m8dc, Institute of Transportation Studies, UC Davis.
  • Handle: RePEc:cdl:itsdav:qt3v25m8dc
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    2. Lee, Jae Hyun & Davis, Adam W. & Goulias, Konstadinos G., 2017. "Triggers of behavioral change: Longitudinal analysis of travel behavior, household composition and spatial characteristics of the residence," Journal of choice modelling, Elsevier, vol. 24(C), pages 4-21.
    3. Kim, Sung Hoo & Mokhtarian, Patricia L., 2023. "Finite mixture (or latent class) modeling in transportation: Trends, usage, potential, and future directions," Transportation Research Part B: Methodological, Elsevier, vol. 172(C), pages 134-173.
    4. Sujae Kim & Sangho Choo & Sungtaek Choi & Hyangsook Lee, 2021. "What Factors Affect Commuters’ Utility of Choosing Mobility as a Service? An Empirical Evidence from Seoul," Sustainability, MDPI, vol. 13(16), pages 1-15, August.
    5. Brand, Christian & Schwanen, Tim & Anable, Jillian, 2020. "‘Online Omnivores’ or ‘Willing but struggling’? Identifying online grocery shopping behavior segments using attitude theory," Journal of Retailing and Consumer Services, Elsevier, vol. 57(C).
    6. Radoslaw Macik & Dorota Macik, 2011. "Physical vs. Virtual Information Search and Purchase in the Buying Behavior of Polish Young Consumers," MIC 2011: Managing Sustainability? Proceedings of the 12th International Conference, Portorož, 23–26 November 2011 [Selected Papers],, University of Primorska, Faculty of Management Koper.
    7. Kim, Sung Hoo & Mokhtarian, Patricia L., 2023. "Comparisons of observed and unobserved parameter heterogeneity in modeling vehicle-miles driven," Transportation Research Part A: Policy and Practice, Elsevier, vol. 172(C).
    8. H. R., Ganesha & Aithal, Sreeramana & P., Kirubadevi, 2020. "Changes in Consumer Perspective towards Discount at Brick-and-Mortar Stores owing to Emergence of Online Store Format in India," MPRA Paper 104023, University Library of Munich, Germany.
    9. Kim, Sung Hoo & Mokhtarian, Patricia L., 2018. "Taste heterogeneity as an alternative form of endogeneity bias: Investigating the attitude-moderated effects of built environment and socio-demographics on vehicle ownership using latent class modelin," Transportation Research Part A: Policy and Practice, Elsevier, vol. 116(C), pages 130-150.
    10. Sabreena Anowar & Shamsunnahar Yasmin & Naveen Eluru & Luis Miranda-Moreno, 2014. "Analyzing car ownership in Quebec City: a comparison of traditional and latent class ordered and unordered models," Transportation, Springer, vol. 41(5), pages 1013-1039, September.
    11. Lee, Jaehyung & Lee, Euntak & Yun, Jaewoong & Chung, Jin-Hyuk & Kim, Jinhee, 2021. "Latent heterogeneity in autonomous driving preferences and in-vehicle activities by travel distance," Journal of Transport Geography, Elsevier, vol. 94(C).
    12. Radoslaw Macik & Dorota Macik & Monika Nalewajek, 2013. "Consumer’s Perception of Retail Formats: Case of Poland," Diversity, Technology, and Innovation for Operational Competitiveness: Proceedings of the 2013 International Conference on Technology Innovation and Industrial Management,, ToKnowPress.
    13. Radoslaw Macik & Dorota Macik & Monika Nalewajek, 2013. "Consumer Preferences for Retail Format Choice: The Case of Polish Consumers," Active Citizenship by Knowledge Management & Innovation: Proceedings of the Management, Knowledge and Learning International Conference 2013,, ToKnowPress.

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