Building Market Structures from Consumer Preferences

1996 ◽  
Vol 33 (3) ◽  
pp. 293-306 ◽  
Author(s):  
Lee G. Cooper ◽  
Akihiro Inoue
Keyword(s):  
Consumer Preferences ◽  
Ideal Point ◽  
Data Types ◽  
Consideration Set ◽  
Market Structures ◽  
Car Market ◽  
Building Market ◽  
Consumer Segment ◽  
Specific Rule ◽  
Using Data

The authors present a model that maps competitive market structures by identifying the preference structure of each consumer segment. By marrying two different data types—switching probabilities and attribute ratings—their model divides a market into several homogeneous sub-markets in which consumers consider a distinctive subset of brands (consideration set or competitive group) with a segment-specific rule for attribute evaluations and a segment-specific ideal point. Using data published in Harshman and colleagues’ (1982) work, the authors examine the U. S. car market and find brand-loyal segments for all car types except those favored by first-time buyers, a universal market, and five switching segments that consider car groups differing in the nation of origin, size, and luxury level. Breaking the switching segment into finer partitions gives a better account of the data than the Colombo-Morrison model or an asymmetric generalization of that model. The authors advocate the development of marketing goals with respect to each of the segment maps in the hope that it will lead to more synergistic marketing strategies for brands encountering multifaceted competition.

Leveraging Brand Equity for Effective Visual Product Design

2020 ◽  
Vol 57 (2) ◽  
pp. 257-277 ◽  
Author(s):  
Mark Heitmann ◽  
Jan R. Landwehr ◽  
Thomas F. Schreiner ◽  
Harald J. van Heerde
Keyword(s):  
Product Design ◽  
Brand Equity ◽  
Design Theory ◽  
Consumer Preferences ◽  
Visual Design ◽  
Visual Appearance ◽  
Car Market ◽  
Market Shares ◽  
Design Characteristics ◽  
Using Data

For many consumer goods, the visual appearance is a vital determinant of market success. Although there is an emerging literature on how objective design characteristics drive consumer preferences, this literature has not yet taken into account that product design happens in the context of a brand’s equity. This research addresses the question of how to leverage brand equity when designing the visual appearance of a product. Specifically, it investigates the role of two key strategic visual design decisions: brand typicality (similarity within the brand’s range) and segment typicality (similarity to the competitive set). Drawing on fluency theory, the authors argue that high-equity brands benefit more from brand typicality but less from segment typicality than low-equity brands. Using data from the U.S. car market tracking market shares of 456 car models of 39 major brands operating in seven market segments across 13 years, the study provides empirical evidence for this conjecture and, thereby, implications for strategic product design and visual design theory.

Building Market Structures from Consumer Preferences

1996 ◽  
Vol 33 (3) ◽  
pp. 293 ◽  
Author(s):  
Lee G. Cooper ◽  
Akihiro Inoue
Keyword(s):  
Consumer Preferences ◽  
Market Structures ◽  
Building Market

Modeling Self-Determination Theory Motivation Data by Using Unfolding IRT

2020 ◽  
pp. 1-9
Author(s):  
Philipp A. Freund ◽  
Annette Lohbeck
Keyword(s):  
Ideal Point ◽  
Self Determination Theory ◽  
Self Determination ◽  
Dominance Model ◽  
Irt Model ◽  
Autonomous Behavior ◽  
Location Parameters ◽  
Unfolding Models ◽  
Using Data ◽  
Item Location

Abstract. Self-determination theory (SDT) suggests that the degree of autonomous behavior regulation is a characteristic of distinct motivation types which thus can be ordered on the so-called Autonomy-Control Continuum (ACC). The present study employs an item response theory (IRT) model under the ideal point response/unfolding paradigm in order to model the response process to SDT motivation items in theoretical accordance with the ACC. Using data from two independent student samples (measuring SDT motivation for the academic subjects of Mathematics and German as a native language), it was found that an unfolding model exhibited a relatively better fit compared to a dominance model. The item location parameters under the unfolding paradigm showed clusters of items representing the different regulation types on the ACC to be (almost perfectly) empirically separable, as suggested by SDT. Besides theoretical implications, perspectives for the application of ideal point response/unfolding models in the development of measures for non-cognitive constructs are addressed.

scholarly journals Estimating Heterogeneous Consumer Preferences for Restaurants and Travel Time Using Mobile Location Data

2018 ◽  
Vol 108 ◽  
pp. 64-67 ◽  
Author(s):  
Susan Athey ◽  
David Blei ◽  
Robert Donnelly ◽  
Francisco Ruiz ◽  
Tobias Schmidt
Keyword(s):  
Mobile Phone ◽  
Travel Time ◽  
Consumer Preferences ◽  
Mobile Location ◽  
Location Data ◽  
Consumer Choices ◽  
Using Data

We estimate a model of consumer choices over restaurants using data from several thousand anonymous mobile phone users. Restaurants have latent characteristics (whose distribution may depend on restaurant observables) that affect consumers' mean utility as well as willingness to travel to the restaurant, while each user has distinct preferences for these latent characteristics. We analyze how consumers reallocate their demand after a restaurant closes to nearby restaurants versus more distant restaurants, comparing our predictions to actual outcomes. We also address counterfactual questions such as what type of restaurant would attract the most consumers in a given location.

scholarly journals Platform Competition in Two-Sided Markets: The Case of Payment Networks

2006 ◽  
Vol 5 (1) ◽  
Author(s):  
Sujit Chakravorti ◽  
Roberto Roson
Keyword(s):  
Consumer Preferences ◽  
Differentiated Products ◽  
Platform Competition ◽  
Market Structures ◽  
Payment Instruments ◽  
Asymmetric Networks ◽  
Market Equilibria ◽  
Duopolistic Competition ◽  
Two Sided Markets

In this article, we construct a model to study competing payment networks, where networks offer differentiated products in terms of benefits to consumers and merchants. We study market equilibria for a variety of market structures: duopolistic competition and cartel, symmetric and asymmetric networks, and alternative assumptions about consumer preferences. We find that competition unambiguously increases consumer and merchant welfare. We extend this analysis to competition among payment networks providing different payment instruments and find similar results.

scholarly journals Branded Versus Non-Branded: Differences in Consumer Preferences

2016 ◽  
Vol 8 (1) ◽  
pp. 57 ◽  
Author(s):  
Antonio Iazzi ◽  
Savino Santovito
Keyword(s):  
Consumer Preferences ◽  
Model Fit ◽  
Paper Test ◽  
Product Model ◽  
Cluster Analyses ◽  
Marketing Managers ◽  
Using Data ◽  
Consumer's Perception

<p>Although brands can signal reputation and serve as proxies for trust, consumer preferences for attributes may differ for branded and non-branded products. The authors of this paper test this hypothesis using data from a particular experiment conducted with Italian jeans’ consumers. The results indicate that consumers appear uncertain when there is an absence of a brand; non-brand-oriented consumers ascribe greater importance to the attributes of a product, with emphasis on those that relate to the product model (fit, comfort, design). Price is important for both types of consumers. Factor and cluster analyses permit identification of elements for the positioning strategies of brand and non-branded products. For marketing managers, it is important to know the consumer’s perception of the product’s characteristics and, accordingly, adopt specific communication and positioning strategies.</p>

scholarly journals The Power of Context in Networks: Ideal Point Models with Social Interactions

2019 ◽  
Author(s):  
Mohammad T. Irfan ◽  
Tucker Gordon
Keyword(s):  
Voting Behavior ◽  
Strategic Behavior ◽  
Ideal Point ◽  
Limited Attention ◽  
Point Model ◽  
Real World Data ◽  
Strategic Behaviors ◽  
Using Data ◽  
Political Spectrum ◽  
The Ideal

Game theory has been widely used for modeling strategic behaviors in networked multiagent systems. However, the context within which these strategic behaviors take place has received limited attention. We present a model of strategic behavior in networks that incorporates the behavioral context, focusing on the contextual aspects of congressional voting. One salient predictive model in political science is the ideal point model, which assigns each senator and each bill a number on the real line of political spectrum. We extend the classical ideal point model with network-structured interactions among senators. In contrast to the ideal point model's prediction of individual voting behavior, we predict joint voting behaviors in a game-theoretic fashion. The consideration of context allows our model to outperform previous models that solely focus on the networked interactions with no contextual parameters. We focus on two fundamental questions: learning the model using real-world data and computing stable outcomes of the model with a view to predicting joint voting behaviors and identifying most influential senators. We demonstrate the effectiveness of our model through experiments using data from the 114th U.S. Congress.

scholarly journals Open competition or balkanized coexistence? The effects of market segments on Toronto private schools

2017 ◽  
Vol 25 ◽  
pp. 39
Author(s):  
Roger Pizarro Milian ◽  
Scott Davies
Keyword(s):  
School Choice ◽  
Private Schools ◽  
Consumer Preferences ◽  
Market Competition ◽  
Economic Behavior ◽  
Public Governance ◽  
Market Effects ◽  
Community Ties ◽  
Using Data ◽  
Organizational Features

For over 25 years, school choice advocates have argued that market competition drives educational organizations to become more differentiated and technically-oriented. However, empirical research has only partially supported this view, observing such outcomes only under certain conditions. To better understand the contingent nature of market effects within education, we draw on sociological and organizational theories that emphasize the ‘embeddedness’ of economic behavior. We test this idea using data from all private schools in Toronto, Canada, a strategic setting that approximates a ‘pure’ market by being mostly free of public governance. We find that, net of factors like school size and age, market segment is associated with the presence of a variety of organizational features. In conclusion, we ponder ways that institutional norms and community ties not only buffer schools from market forces, but also, infuse consumer preferences.

scholarly journals Analysis of consumer habits and attitudes on the Hungarian beef and rabbit market

2009 ◽  
Vol 3 (1-2) ◽  
pp. 67-70 ◽  
Author(s):  
Zoltán Szakály ◽  
Orsolya Szigeti ◽  
Viktória Szente
Keyword(s):  
Consumer Preferences ◽  
Quality Parameters ◽  
Added Value ◽  
Animal Products ◽  
Unique Character ◽  
Consumer Segment ◽  
Image Building ◽  
Rabbit Meat ◽  
Consumer Habits ◽  
Nutritional Benefits

As a consortium partner the authors took part in a research project aiming at the development of high added value, healthy and environment friendly animal products. From among the products developed by the consortium (rabbit meat, omega3-fatty acid enriched beef, goose liver from non forcible feeding, selenium-, vitamin-E and natural color enriched eggs) the present study describes the results concerning beef and rabbit meat. The given products are chosen because they are produced in and exported from Hungary in considerable quantities and their competitiveness can be further improved. In order to able to map the consumer preferences a 300 count nationwide, representative, questionnaire based survey was designed and performed. Actual products were tested by focus groups and professional interviews. Beside the specific features of the products a common character is that the marketing strategy focuses on the distinctive nutritional benefits and other quality parameters that seem to be of crucial importance for the targeted consumer segment. Their unique character and health protecting effects make their branding and using community labeling easy. Their positioning points toward the prestige products therefore consumers tend to accept higher prices. In marketing communication the image building advertisement can be a common goal.

scholarly journals Statistical Analysis of the Electric Car Market Development in Ukraine: Problems and Solutions

2018 ◽  
Vol 81 (2) ◽  
pp. 13-21
Author(s):  
I. A. Honchar ◽  
Z. O. Palyan
Keyword(s):  
Electric Vehicles ◽  
Consumer Preferences ◽  
Economic Activities ◽  
Fourfold Increase ◽  
Electric Cars ◽  
Car Market ◽  
Problems And Solutions ◽  
Group 2 ◽  
Charging Stations

UN Sustainable Development Goals contain an ecological component: stabilizing atmospheric concentrations of greenhouse gases and finding alternative sources of energy. The introduction of electric cars will help solve both problems simultaneously. The analysis of the current world trends in the cars market shows the steady growth of consumer preferences for electric cars and the rapid reaction of the world’s automakers. According to forecasts provided by Bloomberg New Energy Finance, it is expected that in 2040, more than half (54%) of world car sales will come from electric vehicles. The spread of this type of ecological vehicles associated with the decision on technical, organizational and legal nature create an infrastructure of electric charging stations. The article proposed analyzes the dynamics of prevalence of electric vehicles and development of services of electric charging stations in Ukraine. In the car market electric cars Ukraine appeared recently, since 2012 (the first 10 units), but during the next 5 years, the number of registered annually increased by 37.5 times and as of 01.01.2018 already numbered 5688 cars. The rapid increase in the number of registered electric vehicles started from 2016, when the import duty on electric cars was canceled at the legislative level. The number of registered electric cars in Ukraine increased by 11 times in 2016–2017. During these two years the share of electric cars in total sales doubled and reached 4.6% in 2017. Today the coverage of the territory of Ukraine by electric charging stations is about 20%. However, the rate of expansion of the number of electric charging stations even for one 2017 year are impressive, namely, the fourfold increase. Expansion of the Ukrainian market of electric cars is constrained by the unregulated status of electric charging stations, as well as services related to servicing and operation of electric vehicles. First of all, the issue of classification of the activity of providing services for charging the battery of electric cars should be solved. It is possible to resolve the issue, if one distinguishes a separate activity in one of the Classification of Economic Activities (CEA) sections. The current version of the Classification of Economic Activities contains an activity related exclusively to vehicle maintenance (section G, division 45, group 2), which does not include service for charging a car battery. The solution of the issue is the introduction of a new type of activity: “Services for charging batteries”. As a result it will allow creating favorable conditions for the development of the market for servicing and operation of electric vehicles.

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