A Multiple Ideal Point Model: Capturing Multiple Preference Effects From Within an Ideal Point Framework

K. Sudhir (), Jack K.H. Lee () and Joel Steckel ()
Additional contact information
K. Sudhir: School of Management
Jack K.H. Lee: CUNY Baruch College
Joel Steckel: General

Yale School of Management Working Papers from Yale School of Management

Abstract: Previous research has suggested that households and individuals may possess multiple preferences for a given product category. These multiple preferences may be the result of multiple individuals, different uses and usage occasions, and/or variety seeking. As such, single ideal point models that assume a single invariant ideal point may be operating from a false and misleading assumption. We propose a Multiple Ideal Point Model to capture these multiple preference effects. The basic premise of the model is that consumers may possess a set of ideal points, each of which represents a distinct preference. At any given purchase occasion, one of these points is "activated" with some probability and choices are made with respect to its characteristics. In this paper, the Multiple Ideal Point Model and an associated estimation procedure are assessed with respect to its ability to recover a true choice structure. We then empirically test the model on IRI panel data from the powdered soft drink category. The results are discussed and directions for future research are introduced.

Keywords: Multidimensional Scaling; Variety Seeking; Inertia (search for similar items in EconPapers)
JEL-codes: C23 D12 (search for similar items in EconPapers)
Date: 2001-10-23
References: Add references at CitEc
Citations:

Downloads: (external link)
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=286171 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ysm:somwrk:ysm233

Access Statistics for this paper

More papers in Yale School of Management Working Papers from Yale School of Management Contact information at EDIRC.
Bibliographic data for series maintained by ().