Based upon a recently developed multiattribute generalization of prospect theory's value function (Tversky and Kahneman 1991), we argue that consumer choice is influenced by the position of brands relative to multiattribute reference points, and that consumers weigh losses from a reference point...

One of the most managerially useful constructs that emerge from the stochastic modelling of brand choice is that of conditional expectations. In this paper the conditional expectations are derived for a generalization of the NBD model, called the beta binomial/negative binomial distribution...

In this paper, we propose and test a stochastic model of consumer choice that incorporates attribute-based variety seeking. Our stochastic variety-seeking model (SVS) has nested within it a fixed variety-seeking model, a zero-order model of choice, and a first-order (“pure variety”) model....

In this paper we develop a general class of dynamic brand choice models, called (LB) models, which are consistent with the theory of random utility maximization of consumer choice behavior. The underlying random utility process is Markov, and the inter-temporal evolution of the...

A set of alternatives under consideration is often divided into subsets (or local sets) by some external (e.g., product display format at the store) or internal (e.g., a decision rule) factor. We propose that the manner in which a global set of alternatives varying in price and quality is...

Previous research on state dependence indicates that a brand's purchase probabilities vary over time and depend on the levels of inertia and variety seeking and on the identity of the previously purchased brand. Brand-choice probabilities obtained from models such as the logit and the probit...

This paper describes the development and application of a marketing model to help set an incumbent's defensive marketing strategy prior to a new competitor's launch. The management problem addressed is to assess the market share impact of a new entrant in the residential Australian long distance...

Incorporating demographic variables in brand choice models is conceptually appealing and has numerous managerial benefits. Retailers and brand managers can assess geodemographic variations in demand and marketing mix response in order to implement micromarketing strategies. For example, a...

Probabilistic discrete-choice models, such as multinomial logit models, are widely used to predict changes in market shares or total demand resulting from changes in policy variables under management control. These models often are evaluated in terms of their ability to predict choices in a...

Several studies have shown that promotions of national brands yield more effect than those of store brands (e.g., Allenby and Rossi 1991, Blattberg and Wisniewski 1989). However, the evolution of price-quality data available from over the last 15 years seems to reveal a reduction of the quality...