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A Choice Model with Conjunctive, Disjunctive, and Compensatory Screening Rules

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  • Timothy J. Gilbride

    (Mendoza College of Business, University of Notre Dame, Notre Dame, Indiana 46556)

  • Greg M. Allenby

    (Fisher College of Business, 2100 Neil Avenue, Ohio State University, Columbus, Ohio 43210)

Abstract

Many theories of consumer behavior involve thresholds and discontinuities. In this paper, we investigate consumers' use of screening rules as part of a discrete-choice model. Alternatives that pass the screen are evaluated in a manner consistent with random utility theory; alternatives that do not pass the screen have a zero probability of being chosen. The proposed model accommodates conjunctive, disjunctive, and compensatory screening rules. We estimate a model that reflects a discontinuous decision process by employing the Bayesian technique of data augmentation and using Markov-chain Monte Carlo methods to integrate over the parameter space. The approach has minimal information requirements and can handle a large number of choice alternatives. The method is illustrated using a conjoint study of cameras. The results indicate that 92% of respondents screen alternatives on one or more attributes.

Suggested Citation

  • Timothy J. Gilbride & Greg M. Allenby, 2004. "A Choice Model with Conjunctive, Disjunctive, and Compensatory Screening Rules," Marketing Science, INFORMS, vol. 23(3), pages 391-406, October.
    • Handle: RePEc:inm:ormksc:v:23:y:2004:i:3:p:391-406
    DOI: 10.1287/mksc.1030.0032
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    References listed on IDEAS

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