Marketing Letters

, Volume 8, Issue 3, pp 335-348

First online:

Representing Heterogeneity in Consumer Response Models 1996 Choice Conference Participants

  • Wayne DesarboAffiliated withDepartment of Marketing, College of Business Administration, Pennsylvania State University
  • , Asim AnsariAffiliated withColumbia University
  • , Pradeep ChintaguntaAffiliated withUniversity of Chicago
  • , Charles HimmelbergAffiliated withColumbia University
  • , Kamel JedidiAffiliated withColumbia University
  • , Richard JohnsonAffiliated withSawtooth Software
  • , Wagner KamakuraAffiliated withUniversity of Pittsburgh
  • , Peter LenkAffiliated withUniversity of Michigan
  • , Kannan SrinivasanAffiliated withCarnegie Mellon University
    • , Michel WedelAffiliated withUniversity of Groningen

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We define sources of heterogeneity in consumer utility functions relatedto individual differences in response tendencies, drivers of utility, formof the consumer utility function, perceptions of attributes, statedependencies, and stochasticity. A variety of alternative modelingapproaches are reviewed that accommodate subsets of these various sourcesincluding clusterwise regression, latent structure models, compounddistributions, random coefficients models, etc. We conclude by defining anumber of promising research areas in this field.

Heterogeneity latent structure models clusterwise regression random coefficients models compound distributions