Faculty of Economics and Business Administration Publications Database

Adjusting Choice Models to Better Predict Market Behavior

Allenby, Greg M.
Fennel, Geraldine
Huber, Joel
Eagle, Thomas
Gilbride, Timothy J.
Horsky, Dan
Kim, Jaehwan
Lenk, Peter J.
Johnson, Rich
Ofek, Elie
Orme, Bryan
Walker, Joan
Volume: 16
Number: 3 - 4
Pages: 197 - 208
Month: December
ISSN-Print: 0923-0645
Link External Source: Online Version
Year: 2005
Keywords: Bayesian analysis; Extended model of behavior; Motivating conditions
Abstract: The emergence of Bayesian methodology has facilitated respondent-level conjoint models, and deriving utilities from choice experiments has become very popular among those modeling product line decisions or new product introductions. This review begins with a paradox of why experimental choices should mirror market behavior despite clear differences in content, structure and motivation. It then addresses ways to design the choice tasks so that they are more likely to reflect market choices. Finally, it examines ways to model the results of the choice experiments to better mirror both underlying decision processes and potential market choices.