Designing Discrete Choice Experiments: Do Optimal Designs Come at a Price?

Jordan J. Louviere, Towhidul Islam, Nada Wasi, Deborah Street and Leonie Burgess

Journal of Consumer Research: An Interdisciplinary Quarterly, 2008, vol. 35, issue 2, pages 360-375

Abstract: In discrete choice experiments, design decisions are crucial for determining data quality and costs. While high statistical efficiency designs are desirable, they may come at a price if they increase the cognitive burden for respondents. We address this problem by designing 44 experiments that systematically vary numbers of attributes and attribute level differences. Our results for two product categories suggest that respondents systematically are less consistent in answering choice questions as statistical efficiency increases. This relationship holds regardless of the number of attributes and is statistically significant even if one accommodates preference heterogeneity. Implications for practice and future research are discussed. (c) 2008 by JOURNAL OF CONSUMER RESEARCH, Inc..

Date: 2008
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