This paper establishes the following: Random Utility Models (RUMs) that assume consistent preferences result in inconsistent and therefore irrational choice behavior. Paradoxically, it is possible to create RUMs that result in consistent choice behavior, but these models assume inconsistent...

We propose a new method to model consumers' consideration and choice processes. We develop a parsimonious probit type model for consideration and a multinomial probit model for choice, given consideration. Unlike earlier models of consideration ours is not prone to the curse of dimensionality,...

The current study aims to research the promotional strategies targeted to the consumer of a single-product category. Primarily, it focuses on the study of the influence made by the promotional strategies of Manufacturer brands (MB) in the sales of the whole category in general and, in the...

Standard choice models used to optimize product line prices are effective at capturing the effects of prices on the affordability of products but do not incorporate intraline price spillovers, or the effects of prices on consumer preferences for branded product lines. To date, no approach exists...

This paper provides a new and complementary explanation for a pricing puzzle for seasonal products, namely, counter-cyclical pricing, drawing on the category-expansion effects of price promotions. Our study emphasizes the seasonal fluctuation in promotion frequency rather than the change in...

By using a unique data set that contains detailed information on consumer perceived attributes of payment methods and consumer perceived acceptance of payment methods by merchants, we estimate the direct effects of rewards card programs on consumer payment choice for in-store transactions. Our...

As information technology improves rapidly and becomes more accessible, it becomes much easier for consumers to gather product in-formation and spend more time thinking about how to get the most out of their budget constraints. This means that consumers are getting “smarter” and more...

Quantitative models in marketing typically focus on the household as the unit of analysis while ignoring the individual family members' behavior and behavioral interactions among household members. However, knowledge of such intra-household behavioral interaction enables marketers to target...

Discovering the preferences and the behaviour of consumers is a key challenge in marketing. Information about such topics can be gathered through surveys in which the respondents must assign a score to a number of items. In this article we suggest a strategy to analyze such data and achieve this...

For information/digital products, the used goods market has been viewed as a threat by producers. However, it is not clear if this view is justified because the used goods market also provides owners with an opportunity to sell their products. To investigate the impact of the used goods market...