Application of Discrete Choice Methods in Consumer Preference Analysis
Stated consumer preferences refer to hypothetical market behaviour of consumers. In this case the analytical methods are based on data collected a priori by means of surveys to register intentions stated by consumers at the moment of survey taking. The methods used for stated preference analysis include, for instance, discrete choice methods. The general concept of discrete choice methods results from random utility theory. The consumer preference analysis by means of discrete choice methods is based on probability regression models. In this paper a conditional logit model is used to analyse consumer preferences measured against a nominal scale. An example discussed is the result of analysing the preferences of light beer consumers on the basis of a sample of 235 respondents.
KeywordsDiscrete Choice Consumer Preference Full Factorial Design Conjoint Analysis Choice Probability
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