Friday, February 22, 2013

When Discrete Choice Becomes a Rating Scale: Constant Sum Allocation

Why limit our discrete choice task to next purchase when we can ask about next ten purchases? It does not seem appropriate to restrict choice modeling to one selection only when repeat purchases from the same choice set are made by the same individual buying different products at different times. Similarly, a purchasing agent or a company buyer will make multiple purchases over time for different people. Why not use choice modeling for such multiple purchases? Preferences are constructed. The choice task elicits memories of past experiences in similar situations. This alone may be sufficient to generate a response, or additional problem solving may be needed, sometimes a good amount of simplification and sometimes extensive restructuring of the information provided. It depends on the choice task and the respondent. As market researchers, we must make the effort to ensure that our experimental game matches the game played by consumers in the marketplace.