EconPapers    
Economics at your fingertips  
 

Is what you choose what you want?—outlier detection in choice-based conjoint analysis

Yu-Cheng Ku (), Tsun-Feng Chiang () and Sheng-Mao Chang ()
Additional contact information
Yu-Cheng Ku: North Carolina State University
Tsun-Feng Chiang: Henan University
Sheng-Mao Chang: National Cheng Kung University

Marketing Letters, 2017, vol. 28, issue 1, No 3, 29-42

Abstract: Abstract Choice-based conjoint (CBC) analysis has long been a popular technique in market research. Because CBC is dependent upon respondents’ stated preferences, respondent variability should be taken into account in part-worth estimation. In the spirit of Bayesian residuals within the probit framework, this paper proposes a novel respondent variability measure for CBC, called the “utility deviation” (UD), to detect outliers who have unusually high respondent variability. UD is constructed based on the standardized deviation between a respondent’s true and representative utilities on the made choices. We compare UD with the largest absolute realized deviation (LARD) statistic and the typically used metric, root likelihood (RLH), in the performance of outlier detection using simulated and empirical data. The results show that UD performs slightly better than LARD and significantly outperforms RLH. Finally, we show that performing outlier detection to exclude misleading data can significantly improve the quality of estimation and resultant applications.

Keywords: Bayesian residuals; Choice-based conjoint; Hierarchical Bayes; Outlier detection; Random utility theory; Respondent variability (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://link.springer.com/10.1007/s11002-015-9389-3 Abstract (text/html)
Access to full text is restricted to subscribers.

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:kap:mktlet:v:28:y:2017:i:1:d:10.1007_s11002-015-9389-3

Ordering information: This journal article can be ordered from
http://www.springer. ... etailsPage=societies

DOI: 10.1007/s11002-015-9389-3

Access Statistics for this article

Marketing Letters is currently edited by Joel Steckel and Peter Golder

More articles in Marketing Letters from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().

 
Page updated 2025-03-19
Handle: RePEc:kap:mktlet:v:28:y:2017:i:1:d:10.1007_s11002-015-9389-3