Starjournal Quotation Otter, Thomas, Tüchler, Regina, Frühwirth-Schnatter, Sylvia. 2004. Capturing consumer heterogeneity in metric conjoint analysis using Bayesian mixture models. International Journal of Research in Marketing 21 (3): 285-297.


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Abstract

We address unobserved preference heterogeneity within an omitted variable framework which provides a theoretical rationale for more continuous preference distributions, multivariate normal in the limit. A comparison of the random coefficients model (RCM) and the latent class model (LCM) using simulated data illustrates that the RCM dominates the LCM if the underlying distribution is strictly continuous. The LCM dominates the RCM if the underlying distribution is strictly discrete once the sample is informative enough to support the true number of classes. The simulation further documents that the optimal number of classes in an LCM is an unrestricted function of the sample size if the underlying distribution is continuous. Finally, we present an application to the mineral water market, where a finite mixture with random effects model with two components performs best. All models are estimated fully Bayesian, and model comparisons are based on model likelihoods and analyses of holdout data

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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Journal article
Journal International Journal of Research in Marketing
Citation Index SSCI
WU Journalrating 2009 A+
Starjournal Y
Language English
Title Capturing consumer heterogeneity in metric conjoint analysis using Bayesian mixture models
Volume 21
Number 3
Year 2004
Page from 285
Page to 297
URL http://www.sciencedirect.com/science?_ob=PublicationURL&_tockey=%23TOC%235877%232004%23999789996%23519856%23FLA%23&_cdi=5877&_pubType=J&_auth=y&_acct=C000022138&_version=1&_urlVersion=0&_userid=464393&md5=f3d8eba5bef1175ad676a8526379e859

Associations

People
Otter, Thomas (Former researcher)
Frühwirth-Schnatter, Sylvia (Details)
External
Tüchler, Regina
Organization
Institute for Statistics and Mathematics IN (Details)
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