1. Improving Inferences about Preferences in Choice Modeling
- Author
-
Kim, Hyowon
- Subjects
- Business Administration, Marketing, Statistics, Economics, mixed membership models, conjoint analysis, scaled response data, text data, preference heterogeneity
- Abstract
People differ in what they want and why they want it, and individual-level differences in preference lead companies to make an effort to develop diverse products and identify market segmentation in order to satisfy consumer demands in the marketplace. In this sense, we examine two avenues of preference measurement in choice models that require a deep understanding of the nature of heterogeneity. We especially work on improving inferences about preferences by identifying attributes that play an essential role in benefit formation through interaction detection and by providing a more complete picture of demand through data integration at the individual-respondent level. First, we focus on how consumers perceive benefit when some attributes are benefit enabling in the sense that their presence signals that an offering is responsive to a need, while their absence indicates that the product is not responsive. The identification of product attributes and features that are essential for a benefit to exist is critical to new product development and formulation. Second, we investigate the origin of consumer's different preferences (e.g., motivation) to link the objects and drivers of their want at the individual-level through an integrated model of text, scaled response, and choice data. Together, two essays will help us to deeply understand consumer's different preferences based on the structure of perceiving benefits from the product and a coherent story of demand through integrated results of different data.
- Published
- 2020