Experiments in constrained choice

Article Abstract:

This article examines the relative importance of a variety of factors in influencing hierarchical choice. In our first experiment, we test some implications of Tversky and Sattath's (1979) Hierarchical Elimination Model (HEM) relating to a choice set in which an external constraint has been imposed. (An external constraint changes the decision process by partitioning the brands in a different way than the consumer naturally would.) Our experimental results and the theoretical predictions do not converge. While they agree that external partitions do effect choice probabilities, they differ on the nature of the effect. Next, we run a second experiment to test alternative explanations of our empirical results. Using these results, we propose managerial implications for positioning a #1 and #2 brand. (Reprinted by permission of the publisher.)

Beliefs, opinions and attitudes, Soft drink industry, Consumers, Choice (Psychology), Attitudes

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Factorial preference structures

Article Abstract:

This article presents a way to model individual preferences and purchase intentions under the assumption that the pattern of relative similarity or substitutability among brands can be represented factorially. Factorial preference structures represent a compromise between the Luce model, which assumes that none of the alternatives share any common feature, and EBA, which assumes that each possible subset of a choice set has a unique set of common features. Factorial preference structures are compared to several hierarchical structures and to one that assumes that preferences are simply scalable. (Reprinted by permission of the publisher.)

Consumption (Economics), Consumer preferences, Consumer behavior

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