'Zero' Option in Conjoint Analysis

Silva Ohannessian and Gilbert Saporta ()
Additional contact information
Gilbert Saporta: CEDRIC - MSDMA - CEDRIC. Méthodes statistiques de data-mining et apprentissage - CEDRIC - Centre d'études et de recherche en informatique et communications - ENSIIE - Ecole Nationale Supérieure d'Informatique pour l'Industrie et l'Entreprise - Cnam - Conservatoire National des Arts et Métiers [Cnam]

Working Papers from HAL

Abstract: This paper undertakes a study about the "zero" option in conjoint analysis. The "zero" option relates to the no choice of products presented to individuals within the frame of a survey. This no choice embeds two distinct concepts, the refusal and the conflict. The first represents the inappreciation of products, while the second is defined by the preference and choice uncertainty. This work proposes a new econometric specification of the no choice by assuming a mix of utilities maximisation and ordered response models. This mix only associates utilities with products and compares them to the "zero" option thresholds. These comparisons lead to no choice situations without linking utilities to refusal and conflict. A study on the Video on Demand market has been conducted. The results are obtained by applying a bayesian approach in the case of individual models, and the maximum likelihood in the case of aggregate models. The estimates fit the reality and the significance of the refusal and the conflict demonstrates the importance of these variables in the decision making process.

Keywords: Monte Carlo simulations; bayesian approach; separation and non convergence; "zero" option specification; inappreciation of the products; indecision in the choice; market shares (search for similar items in EconPapers)
Date: 2010-04-27
Note: View the original document on HAL open archive server: https://cnam.hal.science/hal-02536209v1
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://cnam.hal.science/hal-02536209v1/document (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:hal:wpaper:hal-02536209

DOI: 10.2139/ssrn.1596203

Access Statistics for this paper

More papers in Working Papers from HAL
Bibliographic data for series maintained by CCSD ().