Abstract
We study the effect of shifts in attribute level differences on consumer choice consistency. Choice consistency is measured as the variance of the random error component in the consumer utility function: the smaller this variance, the higher choice consistency. We hypothesize that due to increased choice difficulty, choice consistency decreases if attribute level differences increase while average utility level differences between alternatives remain the same. In our empirical illustration we focus on the impact of price level shifts on choice consistency in conjoint choice experiments. Our results show that choice consistency decreases as price level differences increase and absolute price levels increase.
| Original language | English |
|---|---|
| Pages (from-to) | 139-147 |
| Number of pages | 9 |
| Journal | Marketing Letters |
| Volume | 10 |
| Issue number | 2 |
| Publication status | Published - 1 Dec 1999 |
| Externally published | Yes |
Keywords
- Choice consistency
- Conjoint choice experiments
- Consumer choice models
- Heteroscedastic logit