Conjoint choice experiments are used widely in marketing to study consumer preferences amongst alternative products. We develop a class of choice models, belonging to the class of Poisson race models, that describe a random utility which lends itself to a process-based description of choice. The...

In this study a CHAID-based approach to detecting classification accuracy heterogeneity across segments of observations is proposed. This helps to solve some important problems, facing a model-builder: 1. How to automatically detect segments in which the model significantly underperforms? 2. How...

The multinomial logit model is frequently used in marketing research to explain consumers' brand choice decisions. In almost all applications of this model, the parameters of the consumers' utility function are assumed to be constant across time. In contrast to this assumption, both marketing...

Companies are collecting increasing amounts of information about their customers. This effort is based on the assumption that more information is better and that this information can be leveraged to predict customers' behavior in a variety of situations and product categories. For example,...

Structural models have become a frontier tool in business and economics research. In this survey, we discuss the literature on structural models for the prescription drug market, which has attracted a significant attention from researchers in marketing and economics, and related fields. The...

Consumers purchase lower quantities of new products compared to those they have purchased in the past. We explain this observation as a result of risk-averting behavior by utility-maximizing consumers. If a new product involves a higher degree of risk that quality expectations will not be met...

The behavioral literature provides ample evidence that consumer preferences are partly driven by the context provided by the set of alternatives. Three important context effects are the compromise, attraction, and similarity effect. As these context effects affect choices in a systematic and...

New product launches are often accompanied by extensive marketing communication campaigns. Firms' allocation decisions for these marketing communication expenditures have two dimensions - across consumers and over time. This allocation problem is different relative to the problem of allocation...

The workhorse brand choice models in marketing are the multinomial logit (MNL) and nested multinomial logit (NMNL). These models place strong restrictions on how brand share and purchase incidence price elasticities are related. They predict market shares well, but not inter-purchase spell...

Sustainability has become one of the constant concerns of active participants in the food chain: producers, traders, consumers, and regulators. The paper aims to identify consumers' perceptions of the use of sustainable food packaging, in an exploratory survey of a sample of 280 respondents,...