Taste and Quality Perception of Attributes in Product Differentiation: An Econometric Model with Latent Variables
We study the consumers' preferences for the various attributes of a product. We consider that the consumers'choices are not guided by observed characteristics of a product, but by the quality perception consumers have on these attributes. Our model integrates this issue by means of latent variables, and is interested in the influence of the information received by the consumer on this perception. It also includes consumers' attitudes by supposing that the weight consumers put on attributes describes their tastes. An econometric application on material choices (wood vs. PVC) in the French window market valid these assumptions.
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- Rosen, Sherwin, 1974. "Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 34-55, Jan.-Feb..
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- Vredin Johansson, Maria & Heldt, Tobias & Johansson, Per, 2006. "The effects of attitudes and personality traits on mode choice," Transportation Research Part A: Policy and Practice, Elsevier, vol. 40(6), pages 507-525, July.
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