search query: @indexterm market research / total: 2057
reference: 89 / 2057
| Author: | Kim, J. Allenby, G.M. Rossi, P.E. |
| Title: | Modeling consumer demand for variety |
| Journal: | Marketing Science
2002 : SUMMER, VOL. 21:3, p. 229-250 |
| Index terms: | Marketing Products Consumer behaviour Market research Models USA |
| Language: | eng |
| Abstract: | Consumers are often observed to purchase more than one variety of a product on a given shopping trip. The simultaneous demand for varieties is observed not only for packaged goods (such as yogurt, soft drinks etc.) but in many other product categories (such as movies, music compact disks etc.) To analyze data with multiple varieties chosen requires a nonstandard utility specification. This paper proposes a demand model based on translated additive utility structure. The model nests the linear utility structure, while allowing for the possibility of a mixture of corner and interiour solutions where more than one but not all varieties are selected. It is found among others that a relatively small fraction of households with extreme preferences dominate the compensating value computations. It is shown that a customization virtually eliminates any utility loss from reduction in variety. |
SCIMA