Understanding and predicting the behavior of decision makers when choosing among discrete goods has been one of the most fruitful areas of applied research over the past thirty years. An understanding of individual consumer behavior can lead to significant changes in product or service design, pricing strategy, distribution channel and communication strategy selection, as well as public welfare analysis. This book is a reference work dealing with the study and prediction of consumer choice behavior, concentrating on stated preference (SP) methods. It shows how SP methods can be implemented, from experimental design to econometric modeling. The book also presents an update of econometric approaches to choice modeling.
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This guide to analysing consumer choice behaviour concentrates on stated preference (SP) methods--placing decision makers in controlled experiments that yield hypothetical choices--rather than revealed preferences (RP)--actual choices in the market. The authors show how SP methods can be implemented, from experimental design to econometric modelling of choice, and combined with RP data to get the best from each type. The book also presents an update of econometric approaches to choice modelling. Central to welfare economics, econometrics, decision sciences, marketing, transport planning, environmental evaluation, geography, statistics.About the Author:
Jordan J. Louviere is Research Professor at the School of Marketing, University of South Australia Business School. He is particularly known for pioneering work in the design and application of discrete choice experiments (also called 'choice-based conjoint') and he also pioneered best-worst scaling (also known as 'Max-Diff Scaling'). He is co-author of Stated Choice Methods: Analysis and Application (Cambridge University Press, 2000).
David Hensher is Professor of Management at the University of Sydney. He is the author of numerous books and articles on discrete choice models, including Stated Choice Methods (Cambridge, 2000) and Applied Choice Analysis (Cambridge, 2005). He teaches discrete choice modelling to academic, business and government audiences, and is also a partner in Econometric Software, the developers of Nlogit and Limdep.
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