Modeling Consumers’ Choices of Multiple Items

1995 ◽  
Vol 32 (4) ◽  
pp. 404-418 ◽  
Author(s):  
Bari A. Harlam ◽  
Leonard M. Lodish
Keyword(s):  
Choice Model ◽  
Product Category ◽  
Soft Drinks ◽  
Purchase Behavior ◽  
Single Item ◽  
Shopping Trip ◽  
Multiple Item ◽  
Shopping Trips ◽  
Prior Behavior ◽  
The Impact

Contemporary choice models focus on choice opportunities in which consumers purchase a quantity of a single item in a product category. However, failing to recognize the possibility of assortments of multiple-Item purchases can lead to incorrect conclusions about the impact of past purchase behavior on current choices. The authors propose a model that allows for multiple-item shopping trips and apply it to scanner data for powdered soft drinks. The model provides descriptions about the influence of (1) consumer's prior behavior across previous shopping trips, (2) behavior within the same shopping trip, (3) the in-store shelf assortment available at the time of purchase, and (4) marketing mix variables on multiple-item shopping trip choices. The authors’ model provides better choice predictions in a holdout sample at the aggregate and assortment composition levels than a traditional, single-purchase choice model. Using the model, they present simulation and naturally occurring experiment results in the powdered soft drinks category. Finally, they discuss the value of their results for understanding the consequences of consumers’ choices and their implications for manufacturers.

Impact of point-of-purchase olfactory cues on purchase behavior

2017 ◽  
Vol 34 (2) ◽  
pp. 119-131 ◽  
Author(s):  
Kaisa Kivioja
Keyword(s):  
Quantitative Methods ◽  
Product Category ◽  
Sales Promotion ◽  
Olfactory Cues ◽  
Purchase Behavior ◽  
Single Product ◽  
Content Type ◽  
Sensory Marketing ◽  
Point Of Purchase ◽  
The Impact

Purpose This study aims to examine the impact of olfactory cues at the point of purchase on consumers’ purchase behavior in terms of sales. Design/methodology/approach The theory of semantic congruence and sensory marketing on consumer behavior is tested using data collected through an experiment and analyzed using quantitative methods. Findings The presence of an olfactory cue has a positive impact on purchase behavior, as measured by product and product-category sales. Results indicate that a more common, category-congruent scent is optimal, as opposed to product-congruent, differentiating scent, even for a single product. Practical implications The findings encourage retailers to implement scents at the point of purchase as a sales promotion tool. Targeting a product category, instead of a single product, would seem the most feasible target scope. Originality/value This paper studies sensory marketing and cue congruence in a real-life retail setting, measuring the impact in terms of sales, and not only in relation to purchase intentions or brand image. Addressing a precisely defined target that suits retailing, namely, a single product and product category, is also novel, contrasting with earlier studies focused on ambient scents in large environments.

scholarly journals PREDICTION OF SHARE OF VISUAL INVENTORY USING STORE DISPLAY, CHANNEL, AND PRODUCT VARIABLES

2021 ◽  
Vol 29 (No.1) ◽  
pp. 163-183
Author(s):  
Avil Terrance Saldanha ◽  
Rajendra Desai ◽  
Rekha Aranha
Keyword(s):  
Soft Drink ◽  
National Income ◽  
Product Category ◽  
The United States ◽  
Soft Drinks ◽  
Data Set ◽  
Food And Beverage ◽  
Research Gap ◽  
The Impact ◽  
Group Product

The purpose of this study is to predict the share of visual inventory (SOVI), which is defined as the number of stock-keeping units (SKUs) of a company’s products, calculated as a percentage of the total SKUs on the display of all products. Research studies in the past have focused mainly on the impact of inventory, which includes back end and visual inventory, on sales but less attention has been given to the impact of SOVI on sales. To address this research gap, this study attempted to create an analytics model to predict SOVI at the category of soft drinks level using four predictor variables namely point of purchase display, channel/sub-channel, package group, product category, and derived variable gross national income (GNI). The results were encouraging confirming the effectiveness of such a model. The researchers utilized a data set collected over a period of 18 months (February 2016 to July 2017) by a soft drink firm headquartered in the United States. Based on the findings, it is suggested that this prediction model can be utilized by other researchers and practitioners to predict SOVI of other soft drinks, fast-moving consumer goods (FMCG), and food and beverage companies.

An Empirical Study of Store Choice Model: An Endogenous Construct

2014 ◽  
Vol 4 (2) ◽  
Author(s):  
Prof. Amit Shrivastava ◽  
Prof. Sushil Kumar Pare ◽  
Prof (Dr) Saumya Singh
Keyword(s):  
Empirical Research ◽  
Consumer Choice ◽  
Choice Model ◽  
Social Science Research ◽  
Product Category ◽  
Science Research ◽  
Consumer Decision Making ◽  
Store Choice ◽  
Store Attributes ◽  
Patronage Intention

Inadequate is the empirical research on store choice model in view of retail store attributes with endogenous construct of store patronage intention of consumer. Conventional wisdom and social science research-based insights for underpinning the design of store environment established elements such as music, scent, crowding and physical attractiveness of the store. Earlier empirical findings lack on key anterior, which include consumers’ time and effort as well as the psychological costs such as convenient, economical, risk mitigated shopping experience. The premise on which overall effects in our model rests, is that store attributes influence consumers' cognitive process and develop perceptual framework of store choice criteria — namely, convenience, reputation of outlet, branded merchandise (mediated through perceived quality). This research presents a formal test of the linear regression equation model in the context of store choice behaviour, involving one product category. The present paper explores these attributes and their affect on consumer from different socio-economic classes, willingness to purchase and to patronize if these factors are modified. Questioning the earlier conclusions that all attributes aforementioned are equally important in consumer decision making, the current results indicate that consumers place differential significance on each attribute, and the level of significance placed on each attribute varies with different socio economic class. These findings are significantly important to the retail industry as they identify the critical attributes responsible for building consumer choice and patronage among different socio economy classes. This model also paves way for another premise of empirical research, that shoppers might develop category-wise store choice or patronage behaviour model.

The Impact of Zoning and Built Environment Characteristics on Transit, Biking, and Walking

2019 ◽  
Vol 11 (1) ◽  
pp. 108-129
Author(s):  
Andrew G. Mueller ◽  
Daniel J. Trujillo
Keyword(s):  
Land Use ◽  
Built Environment ◽  
Discrete Choice ◽  
Travel Behavior ◽  
Choice Model ◽  
Mode Choice ◽  
Land Use Regulation ◽  
Policy Action ◽  
Development Goals ◽  
The Impact

This study furthers existing research on the link between the built environment and travel behavior, particularly mode choice (auto, transit, biking, walking). While researchers have studied built environment characteristics and their impact on mode choice, none have attempted to measure the impact of zoning on travel behavior. By testing the impact of land use regulation in the form of zoning restrictions on travel behavior, this study expands the literature by incorporating an additional variable that can be changed through public policy action and may help cities promote sustainable real estate development goals. Using a unique, high-resolution travel survey dataset from Denver, Colorado, we develop a multinomial discrete choice model that addresses unobserved travel preferences by incorporating sociodemographic, built environment, and land use restriction variables. The results suggest that zoning can be tailored by cities to encourage reductions in auto usage, furthering sustainability goals in transportation.

scholarly journals Do millennials value travel time differently because of productive multitasking? A revealed-preference study of Northern California commuters

2021 ◽  
Author(s):  
Aliaksandr Malokin ◽  
Giovanni Circella ◽  
Patricia L. Mokhtarian
Keyword(s):  
Older Adults ◽  
Young Adults ◽  
Willingness To Pay ◽  
Travel Time ◽  
Choice Model ◽  
Mode Choice ◽  
Revealed Preference ◽  
Northern California ◽  
Factors Affecting ◽  
The Impact

AbstractMillennials, the demographic cohort born in the last two decades of the twentieth century, are reported to adopt information and communication technologies (ICTs) in their everyday lives, including travel, to a greater extent than older generations. As ICT-driven travel-based multitasking influences travelers’ experience and satisfaction in various ways, millennials are expected to be affected at a greater scale. Still, to our knowledge, no previous studies have specifically focused on the impact of travel multitasking on travel behavior and the value of travel time (VOTT) of young adults. To address this gap, we use an original dataset collected among Northern California commuters (N = 2216) to analyze the magnitude and significance of individual and household-level factors affecting commute mode choice. We estimate a revealed-preference mode choice model and investigate the differences between millennials and older adults in the sample. Additionally, we conduct a sensitivity analysis to explore how incorporation of explanatory factors such as attitudes and propensity to multitask while traveling in mode choice models affects coefficient estimates, VOTT, and willingness to pay to use a laptop on the commute. Compared to non-millennials, the mode choice of millennials is found to be less affected by socio-economic characteristics and more strongly influenced by the activities performed while traveling. Young adults are found to have lower VOTT than older adults for both in-vehicle (15.0% less) and out-of-vehicle travel time (15.7% less), and higher willingness to pay (in time or money) to use a laptop, even after controlling for demographic traits, personal attitudes, and the propensity to multitask. This study contributes to better understanding the commuting behavior of millennials, and the factors affecting it, a topic of interest to transportation researchers, planners, and practitioners.

The Impact of Rural Finance on Rural Economic Development from the Perspective of Efficiency of Discrete Differential Algorithm

2021 ◽  
Vol 7 (5) ◽  
pp. 4358-4365
Author(s):  
Mingxu Peng ◽  
Jiawen Huang
Keyword(s):  
Economic Growth ◽  
Rural Economy ◽  
Choice Model ◽  
Influence Factors ◽  
Maximum Flow ◽  
Pso Algorithm ◽  
Significant Degree ◽  
Theoretical Research ◽  
The Impact ◽  
The Relationship

Objectives: Finance is the core of the national economy. The development of modern rural economy is inseparable from financial support. The relationship between finance and economic growth has always been one of the hot topics in theoretical research and empirical analysis. Methods: Under the background of the development of Internet e-commerce, the maximum flow algorithm was based on the empirical research on the relationship between China’s financial development and economic growth. Results: Based on this, the two-element discrete choice model of Probit and Logistic for economic growth was constructed. Discrete particle swarm optimization (PSO) algorithm was used to estimate the parameters of the model. The significant degree of the influence factors was calculated. Conclusion: Finally, it was calculated that concurrent business was the decisive factor of economic growth.

The influence of price and promotion on package size propensity

2017 ◽  
Vol 32 (2) ◽  
pp. 93-103
Author(s):  
Amit K. Ghosh
Keyword(s):  
Decision Making ◽  
Product Category ◽  
Relative Price ◽  
Grocery Stores ◽  
Consumer Decision Making ◽  
Content Type ◽  
Household Level ◽  
Packaged Goods ◽  
Package Size ◽  
The Impact

Purpose The constantly changing prices, promotions, and packaging options have made decision making more complex for consumers of packaged goods. The purpose of this paper is to explore how price and promotions influence consumer propensity to buy a certain package size. Design/methodology/approach Scanner panel data for shelf-stable salad dressing obtained from Information Resources Inc. were used to compute the proportion of large packages bought, the relative price paid for large packages, propensity to use various types of promotions, and a behavioral covariate for each household. Data of over 5,600 households were analyzed using a multiple regression analysis for hypothesis testing. Findings The positive nature of relationship between the relative price of large packages and the proportion of large packages bought demonstrates the suboptimal nature of consumer decision making. The inefficiency is partially attributable to the abundance of promotions, to consumers’ lack of price awareness, and to the use of heuristics by consumers. Also, consumers who are prone to use promotions such as displays and temporary price reductions tend to purchase larger packages. They are more likely to buy impulsively and base their decisions on heuristics. In contrast, consumers who are influenced by featured price cuts and who utilize coupons tend to purchase smaller packages. Research limitations/implications Data were obtained from grocery stores; only a single product category was studied. Practical implications Offer coupons and advertise featured price cuts on small packages to increase the sales of smaller packages. To move large packages successfully, retailers should rely more on in-store displays and temporary price reductions. Originality/value The impact of price and promotions on package size propensity has never been investigated. This study is also one of the few that uses a household-level analysis based on observable purchase data for consumer packaged goods.

scholarly journals How to use C-OAR-SE to design optimal standard measures

2016 ◽  
Vol 50 (11) ◽  
pp. 1924-1941 ◽  
Author(s):  
John R. Rossiter
Keyword(s):  
Future Research ◽  
Alternative Measure ◽  
Single Item ◽  
Content Type ◽  
Multiple Item ◽  
Measure Design ◽  
Alternative Measures ◽  
Accepted Practice ◽  
Meta Analyses ◽  
Convergent Validation

Purpose This paper aims to extend Rossiter’s C-OAR-SE method of measure design (IJRM, 2002, p. 19, p. 4, pp. 305-335; EJM, 2011, p. 45, p. 11, p. 12, pp. 1561-1588) by proposing five distinct construct models for designing optimally content-valid multiple-item and single-item measures. Design/methodology/approach The paper begins by dismissing convergent validation, the core procedure in Nunnally’s (1978) and Churchill’s (1979) psychometric method of measure design which allows alternative measures of the same construct. The method of dismissal is the mathematical demonstration that an alternative measure, no matter how highly its scores converge with those from the original measure, will inevitably produce different findings. The only solution to this knowledge-threatening problem is to agree on an optimal measure of each of our major constructs and to use only that measure in all future research, as is standard practice in the physical sciences. The paper concludes by proposing an extension of Rossiter’s C-OAR-SE method to design optimal standard measures of judgment constructs, the most prevalent type of construct in marketing. Findings The findings are, first, the mathematical dismissal of the accepted practice of convergent validation of alternative measures of the same construct, which paves the way for, second, the proposal of five new C-OAR-SE-based construct models for designing optimal standard measures of judgment constructs, three of which require a multiple-item measure and two of which a single-item measure. Practical implications The common practice of accepting alternative measures of the same construct causes major problems for the social sciences: when different measures are used, it becomes impossible, except by remote chance, to replicate findings; meta-analyses become meaningless because the findings are averaged over different measures; and empirical generalizations cannot be trusted when measures are changed. These problems mean that we cannot continue to accept alternative measures of the constructs and that, for each construct, an optimal standard measure must be found. Originality/value The ideas in this paper, which have untold value for the future of marketing as a legitimate science, are unique to Rossiter’s C-OAR-SE method of measure design.

scholarly journals Factors Affecting Environmentally Responsive Consumption Behavior in India: An Empirical Study

2018 ◽  
Vol 8 (1) ◽  
pp. 16-35
Author(s):  
Abhinav Gupta ◽  
Upendra Singh
Keyword(s):  
Purchase Intention ◽  
Environmental Attitudes ◽  
Behavioral Outcomes ◽  
Purchase Behavior ◽  
Research Attention ◽  
Factors Affecting ◽  
Consumption Behavior ◽  
Environmentally Responsive ◽  
Direct Outcome ◽  
The Impact

Environmental marketing continues to be a heavily researched area, in part due to a heightened awareness and concern for the environment among consumers. An area that has received considerable research attention is the relationship of various environmental attitudes and intentions with environmental behavioral outcomes. The conventional approach has been to linearly relate environmental attitudes and intentions among themselves and with behavioral outcomes, even though no clear pattern has emerged. The objective of the study is to understand the impact of factors influencing environmentally responsive consumption behavior on purchase intentions and purchase behavior. Data were collected from 514 respondents from Delhi. From the findings of this article, it can be stated that purchase behavior is the direct outcome of purchase intention. Further, purchase intention shows direct significant relationship, with subjective norm, attitude toward the behavior, willingness to pay, environmental consciousness, green self-identity, and perceived behavior control.

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