Date of Award
Thesis - Restricted
Master of Science (MS)
Mathematics, Statistics and Computer Science
Hamedani, Hossein, G.
Multinomial Probit or Multinomial Logit models are frequently used in marketing research for modeling brand choices of consumers. The main idea is that consumers choose brands by maximizing brands' utilities. This leads to multinomial probit or multinomial logit model depending upon the assumption on the distribution of errors. Recently, it has been pointed out by many authors that different consumers behave differently, and the brand utilities for different consumers are different. We show through an empirical study that this heterogeneity leads to a significant improvement in the model in a Bayesian framework. We also develop a goodness of fitness measure based on the predicted probabilities.
Chigwada, Hamunyari M., "Statistical Modeling of Consumer Purchasing Behavior" (2008). Master's Theses (1922-2009) Access restricted to Marquette Campus. 2132.