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Modeling Multiple Sources of Heterogeneity in Multinomial Logit Models: Methodological and Managerial Issues
Abstract
We offer a framework to specify and estimate various sources of heterogeneity in multinomial logit brand choice models. We let each brand-specific intercept and each parameter of the explanatory variable vector vary randomly across households. In addition, we distinguish loyal households from the rest. Our results suggest that incorporating multiple sources of heterogeneity improves the model fit and suggests higher impact of marketing mix elements on brand choice. We highlight the importance of incorporating multiple sources of heterogeneity. The model we implement yields valuable managerial insights.
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Citations
Cited by
Marketing models of consumer heterogeneity
Allenby, G. M., & Rossi, P. E. (1998) · Journal of Econometrics · doi:10.1016/s0304-4076(98)00055-4 · Cited by 785
Success in High-Technology Markets: Is Marketing Capability Critical?
Dutta, S., Narasimhan, O., & Rajiv, S. (1999) · Marketing Science · doi:10.1287/mksc.18.4.547 · Cited by 708
Endogeneity in Brand Choice Models
Villas-Boas, J. M., & Winer, R. S. (1999) · Management Science · doi:10.1287/mnsc.45.10.1324 · Cited by 502
Advertising, learning, and consumer choice in experience good markets: An empirical examination
Ackerberg, D. A. (2003) · International Economic Review · doi:10.1111/1468-2354.t01-2-00098 · Cited by 476
New Empirical Generalizations on the Determinants of Price Elasticity
Bijmolt, T. H. A., Van Heerde, H. J., & Pieters, R. G. M. (2005) · Journal of Marketing Research · doi:10.1509/jmkr.42.2.141.62296 · Cited by 440
Metadata
- Authors
- Gönül, F., & Srinivasan, K.
- Venue
- Marketing Science
- Published
- 1993-08
- Volume
- 12
- Issue
- 3
- Pages
- 213-229
- ISSN
- 0732-2399 (ISSN-L)
- 1526-548X
- OpenAlex
- W2162487260
- Cited by
- 225
- References
- 0
- FWCI
- 36.37
- Type
- journal article
- Language
- en
- Open access
- closed
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- Gönül, F., & Srinivasan, K. (1993). Modeling Multiple Sources of Heterogeneity in Multinomial Logit Models: Methodological and Managerial Issues. Marketing Science. https://doi.org/10.1287/mksc.12.3.213
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Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
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