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Extra resources for Marketing
Example text
McAlister & Pessemier [1982] distinguish between several types of behavior by individuals that relate to multiple needs, the acquisition of information, and the alternating purchase of familiar products (variety seeking). They hypothesize that consumers have an ideal point or satiation level for the product's attributes that leads to its decreasing utility after a period of sustained consumption. e. perform variety seeking. Let us consider the study by Lattin & McAlister [1985], who used a Luce model to understand the effect of brand similarities on purchase-event feedback.
Consumcr decision hierarchy for deodorant purchase. (Source: Urban & Hauser [_1980, p. ) chooses the form of deodorant and then, conditional on that choice~ selects a specific brand. We model the choice of product form and the choice of brand within form separately. A commonly applied hierarchical model is the nested lo9it model. Algebraically we may write: Pij = PjliPi (35) where P~j = probability of choosing brand j and product form i, P~ = unconditional probability of choosing product form i, Pjti = probability of choosing brand j, given product form i.
But there are dangers with this simplified approach. What about a new product? Is it reasonable to use the same model to predict choice when the attributes of some products are known with more certainty than those of others? The specific form of the value function in Equation (26) assumes constant variations in value for each given level of change in the level of a specific attribute. It also assumes that the value of a change in the level of an attribute is independent of the levels of the other attributes.