Date of Award
Summer 2008
Document Type
Thesis - Restricted
Degree Name
Master of Science (MS)
Department
Mathematics, Statistics and Computer Science
First Advisor
Bansal, Naveen
Second Advisor
Hamedani, Hossein, G.
Third Advisor
Ghose, Sanjoy
Abstract
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.
Recommended Citation
Chigwada, Hamunyari M., "Statistical Modeling of Consumer Purchasing Behavior" (2008). Master's Theses (1922-2009) Access restricted to Marquette Campus. 2132.
https://epublications.marquette.edu/theses/2132