Accounting for Interaction Effects and Consumer Heterogeneity in an Ordered Probit Analysis of International Air Traveller Preferences
نویسنده
چکیده
In this paper, the authors analyze product attributes and consumer characteristics in an international service selection decision. Previous work has focused on main effects without exploring the significance of interaction or individual heterogeneity effects. Using conjoint and ordered probit analyses, we find that including interaction and respondent specific dummy variables alters the impacts of main effect variables. Furthermore, accounting for interaction and consumer heterogeneity increases the predictive ability of the consumer preference model.
منابع مشابه
Accounting for Consumer Heterogeneity in Preferences over GM Foods: An Application of the Latent Market Segmentation Model
Understanding consumer heterogeneity in preferences over GM foods is one of the most vital components of the policy discussions over labelling and market segmentation. The paper presents an application of the latent segmentation (LS) model as an alternative approach to accounting for preference heterogeneity in the demand for GM foods. The model is applied to a data set obtained from a stated p...
متن کاملModelling health state valuation data
An important task in deriving a summary measure of health is to incorporate stated preferences into health state classifications. This paper examines a range of alternative econometric models for dealing with a skewed, truncated, non-continuous and hierarchical (at the individual level) data set of standard gamble valuations of health states defined by the health state classification the SF-6D....
متن کاملAn Ordered Probit Approach for Exploring the Role of Self-Efficacy and Financial Literacy on Personal Finance Behavior
The present study investigates the impact of financial self-efficacy on personal finance behavior. To this end, the data collected from the questionnaire have been employed. Once the validity and reliability of the questionnaire are confirmed, the relation between financial self-efficacy and the likelihood of holding a specific financial product is studied using the multivariate Probit model. P...
متن کاملStrategic interaction on Liquidity Risk in Iranian Banks
The peer effects induced by social interactions have been studied empirically for several socio-economic phenomena in the last three decades. Before, economists have considered preferences of actors as exogenous parameters which are a tradition rooted in the work of Milton Friedman. But most recently, many economists have studied processes of preference formation of actors and have developed th...
متن کاملA Validation Test Naive Bayesian Classification Algorithm and Probit Regression as Prediction Models for Managerial Overconfidence in Iran's Capital Market
Corporate directors are influenced by overconfidence, which is one of the personality traits of individuals; it may take irrational decisions that will have a significant impact on the company's performance in the long run. The purpose of this paper is to validate and compare the Naive Bayesian Classification algorithm and probit regression in the prediction of Management's overconfident at pre...
متن کامل