A Disaggregate Noncompensatory Choice Model

Dennis H. Gensch, University of Wisconsin-Milwaukee
Joseph A. Svestka, Cleveland State University
Rajshekhar G. Javalgi, Univ. of Wisconsin-Milwaukee
ABSTRACT - Empirical research work modeling consumer multiattribute choice problems using logit, probit, regression, conjoint, and LINMAP, which are derived from the utility maximization principle, are currently used in almost all applications. However, in their work, Russ (1971), Tversky (1972), Newell and Simon (1972), and Tversky and Sattath (1979) indicate that for many problems, choice behavior appears to be context dependent and hierarchical. The disaggregate hierarchical choice modeling approach has been restricted due to the lack of an efficient operational algorithm. This paper discusses a disaggregate noncompensatory model which estimates threshold tolerances (cutpoints), eliminates nonchosen alternatives, provides choice probabilities, and finally offers diagnostic information regarding the key attributes that are responsible for making a final decision.
[ to cite ]:
Dennis H. Gensch, Joseph A. Svestka, and Rajshekhar G. Javalgi (1986) ,"A Disaggregate Noncompensatory Choice Model", in NA - Advances in Consumer Research Volume 13, eds. Richard J. Lutz, Provo, UT : Association for Consumer Research, Pages: 664.

Advances in Consumer Research Volume 13, 1986      Page 664

A DISAGGREGATE NONCOMPENSATORY CHOICE MODEL

Dennis H. Gensch, University of Wisconsin-Milwaukee

Joseph A. Svestka, Cleveland State University

Rajshekhar G. Javalgi, Univ. of Wisconsin-Milwaukee

ABSTRACT -

Empirical research work modeling consumer multiattribute choice problems using logit, probit, regression, conjoint, and LINMAP, which are derived from the utility maximization principle, are currently used in almost all applications. However, in their work, Russ (1971), Tversky (1972), Newell and Simon (1972), and Tversky and Sattath (1979) indicate that for many problems, choice behavior appears to be context dependent and hierarchical. The disaggregate hierarchical choice modeling approach has been restricted due to the lack of an efficient operational algorithm. This paper discusses a disaggregate noncompensatory model which estimates threshold tolerances (cutpoints), eliminates nonchosen alternatives, provides choice probabilities, and finally offers diagnostic information regarding the key attributes that are responsible for making a final decision.

For further information, write to:

Professor Dennis H. Gensch / School of Business Administration / University of Wisconsin-Milwaukee / Milwaukee WI 53201

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