Continuous models of respondent heterogeneity assume the existence of a response function where variables of interest are continuously related to explanatory variables. In many situations this assumption may not be true. In this paper we propose an approach of modeling respondent heterogeneity...

Two Bayesian optimal design criteria for hierarchical linear models are discussed - the psi_beta criterion for the estimation of individual-level parameters beta, and the psi_theta criterion for the estimation of hyper-parameters theta. While the psi_beta criterion involves only the...

Brand preferences and marketplace demand are a reflection of the importance of underlying needs of consumers and the efficacy of product attributes for delivering value. Dog owners, for example, may look to dog foods to provide specific benefits for their pets (e.g., shiny coats) that may not be...

A choice model based on direct utility maximization subject to an arbitrary number of constraints is developed and applied to conjoint data. The model can accommodate oth corner and interior solutions, and provides insights into the proportion of respondents bound by each constraint. Application...

Media exposures can have effects that do not always lead to the immediate purchase of a brand. Some media are effective at initiating search and trial, while others are more effective at promoting purchase once search and trial have taken place. The idea of intermediate communication effects...

The use of adaptive designs in conjoint analysis has been shown to lead to an endogeneity bias in part-worth estimates using sampling experiments. In this paper, we re-examine the endogeneity issue in light of the likelihood principle. The likelihood principle asserts that all relevant...

Economies of scope in direct utility models exist when consumers encounter costs and inconvenience in purchase and consumption. Travel time, product acquisition, training, expertise, and skills are examples of factors that impact the ability of consumers to derive utility from offerings beyond...

User generated content in the form of customer reviews, blogs or tweets is an emerging and rich source of data for marketers. Topic models have been successfully applied to such data, demonstrating that empirical text analysis benefits greatly from a latent variable approach which summarizes...

We examine the nature of best-worst data for modeling consumer preferences and predicting their choices. We show that, contrary to the assumption of widely used models, the best and worst responses do not originate from the same data-generating process. We propose a sequential evaluation model...

Distributional assumptions for random utility models play an important role in relating observed product attributes to choice probabilities. Choice probabilities derived with independent errors have the IIA property, which often does not match consumer behavior and leads to inaccurate source of...