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Title of Journal: Mark Lett

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Abbravation: Marketing Letters

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Springer US

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DOI

10.1016/0370-2693(85)90648-3

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1573-059X

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Integrated mixed logit and latent variable models

Authors: Vishva Manohara Danthurebandara Martina Vandebroek Jie Yu
Publish Date: 2012/10/31
Volume: 24, Issue: 3, Pages: 245-259
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Abstract

Extending the traditional discrete choice model by incorporating latent psychological factors can help to better understand the individual’s decisionmaking process and therefore to yield more reliable partworth estimates and market share predictions Several integrated choice and latent variable ICLV models which merge the conditional logit model with a structural equation model exist in the literature They assume homogeneity in the partworths and use latent variables to model the heterogeneity among the respondents This paper starts from the mixed logit model that describes the heterogeneity in the partworths and uses the latent variables to decrease the unexplained part of the heterogeneity The empirical study presented here shows these ICLV models perform very well with respect to model fit and prediction

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  10. It’s all relative: how customer-perceived competitive advantage influences referral intentions
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