Uses of Choice Modelling
Choice modelling is particularly useful for:
- Predicting uptake and refining New Product Development
- Estimating the implied willingness to pay (WTP) for goods and services
- Product or service viability testing
- Variations of product attributes
- Understanding brand value and preference
- Demand estimates and optimum pricing
- Brand value
Choice modelling is a standard technique in travel demand modelling. A classical reference is Ben Akiva and Lerman (1989), and Cascetta (2009); more recent methodological developments are described in Train (2003).
Early applications of discrete choice theory to marketing are described in Anderson et al. (1992)
Recent developments include a Bayesian approach to discrete choice modelling as set out in Rossi, Allenby, and McCulloch (2009)
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Famous quotes containing the words choice and/or modelling:
“Come and take choice of all my library,
And so beguile thy sorrow.”
—William Shakespeare (1564–1616)
“The windy springs and the blazing summers, one after another, had enriched and mellowed that flat tableland; all the human effort that had gone into it was coming back in long, sweeping lines of fertility. The changes seemed beautiful and harmonious to me; it was like watching the growth of a great man or of a great idea. I recognized every tree and sandbank and rugged draw. I found that I remembered the conformation of the land as one remembers the modelling of human faces.”
—Willa Cather (1873–1947)