By now it’s well known that response consistency affects the scale of MNL model coefficients (Ben... more By now it’s well known that response consistency affects the scale of MNL model coefficients (Ben Akiva and Lerman 1985, Swait and Louviere 1993). As responses in a choice experiment have more heterogeneity, MNL coefficients tend to be smaller, all else being equal. Heterogeneous responses may come from between-respondent differences in preferences (resulting from taste variation or situational effects) or from within-respondent inconsistency (due to context effects and response error). Consider this a macro-level effect of response consistency: whatever its source, across a large number of choice sets inconsistent responses tend to cancel out to create a non-directional “white noise” that reduces the magnitude of an MNL model’s coefficients. At a micro level, however, response inconsistency has a second effect. Imagine a small model, one based on a dozen choice sets. In this smaller data set response inconsistencies tend not to cancel out but to result in biased coefficients....
Common methods for pricing research ask respondents to evaluate multiple pricing scenarios. Likel... more Common methods for pricing research ask respondents to evaluate multiple pricing scenarios. Likely respondents can allow some carry‐over to occur from one scenario to the next. In a study wherein such carry‐over conflicts with the objectives of the research a different experimental design will be more appropriate. Moderated choice experimental designs are introduced and illustrated in a study of every day low price pricing of a consumer durable good. Substantive conclusions about durable goods pricing strategies and about moderated choice experiments are reported.
There are several different approaches to designing choice-based conjoint experiments and several... more There are several different approaches to designing choice-based conjoint experiments and several kinds of effects one might want to model and quantify in such experiments. The approaches differ in terms of which effects they can capture and in how efficiently they do so. No ...
By now it’s well known that response consistency affects the scale of MNL model coefficients (Ben... more By now it’s well known that response consistency affects the scale of MNL model coefficients (Ben Akiva and Lerman 1985, Swait and Louviere 1993). As responses in a choice experiment have more heterogeneity, MNL coefficients tend to be smaller, all else being equal. Heterogeneous responses may come from between-respondent differences in preferences (resulting from taste variation or situational effects) or from within-respondent inconsistency (due to context effects and response error). Consider this a macro-level effect of response consistency: whatever its source, across a large number of choice sets inconsistent responses tend to cancel out to create a non-directional “white noise” that reduces the magnitude of an MNL model’s coefficients. At a micro level, however, response inconsistency has a second effect. Imagine a small model, one based on a dozen choice sets. In this smaller data set response inconsistencies tend not to cancel out but to result in biased coefficients....
Common methods for pricing research ask respondents to evaluate multiple pricing scenarios. Likel... more Common methods for pricing research ask respondents to evaluate multiple pricing scenarios. Likely respondents can allow some carry‐over to occur from one scenario to the next. In a study wherein such carry‐over conflicts with the objectives of the research a different experimental design will be more appropriate. Moderated choice experimental designs are introduced and illustrated in a study of every day low price pricing of a consumer durable good. Substantive conclusions about durable goods pricing strategies and about moderated choice experiments are reported.
There are several different approaches to designing choice-based conjoint experiments and several... more There are several different approaches to designing choice-based conjoint experiments and several kinds of effects one might want to model and quantify in such experiments. The approaches differ in terms of which effects they can capture and in how efficiently they do so. No ...
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