Likelihood estimation of consumer preferences in choice-based conjoint analysis

被引:14
作者
Halme, Merja [1 ]
Kallio, Markku [1 ]
机构
[1] Aalto Univ, Sch Business, Dept Informat & Serv Econ, FI-00076 Aalto, Finland
关键词
Conjoint analysis; Utility function; Preference estimation; Maximum likelihood; Marketing research;
D O I
10.1016/j.ejor.2014.05.044
中图分类号
C93 [管理学];
学科分类号
12 ; 1201 ; 1202 ; 120202 ;
摘要
In marketing research the measurement of individual preferences and assessment of utility functions have long traditions. Conjoint analysis, and particularly choice-based conjoint analysis (CBC), is frequently employed for such measurement. The world today appears increasingly customer or user oriented wherefore research intensity in conjoint analysis is rapidly increasing in various fields, OR/MS being no exception. Although several optimization based approaches have been suggested since the introduction of the Hierarchical Bayes (HB) method for estimating CRC utility functions, recent comparisons indicate that challenging HR is hard. Based on likelihood maximization we propose a method called LM and compare its performance with HB using twelve field data sets. Performance comparisons are based on holdout validation, i.e. predictive performance. Average performance of LM indicates an improvement over HB and the difference is statistically significant. We also use simulation based data sets to compare the performance for parameter recovery. In terms of both predictive performance and RMSE a smaller number of questions in CBC appears to favor LM over HB. (C) 2014 Elsevier B.V. All rights reserved.
引用
收藏
页码:556 / 564
页数:9
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