IDEAS home Printed from https://ideas.repec.org/a/inm/ormksc/v2y1983i1p19-56.html
   My bibliography  Save this article

Formal Choice Models in Marketing

Author

Listed:
  • Marcel L. Corstjens

    (INSEAD, Boulevard de Constance, 77305 Fontainebleau Cedex, France)

  • David A. Gautschi

    (INSEAD, Boulevard de Constance, 77305 Fontainebleau Cedex, France)

Abstract

The paper gives an overview and evaluates the theoretical traditions underlying choice models that are used in marketing. In particular, the emphasis of this essay is on the underlying assumptions, limitations and empirical demands of these choice models. Four fundamental choice models are used as a basis to analyze this complex field; the neoclassical economic theory as extended by Lancaster, the Risk-Preference Theory of Choices under uncertainty, the Strict Utility Theory and the Random Utility Theory. These four choice models and their extensions are compared and contrasted along the three critical steps in the model building process: theory generation, parameterization and estimation.

Suggested Citation

  • Marcel L. Corstjens & David A. Gautschi, 1983. "Formal Choice Models in Marketing," Marketing Science, INFORMS, vol. 2(1), pages 19-56.
    • Handle: RePEc:inm:ormksc:v:2:y:1983:i:1:p:19-56
    DOI: 10.1287/mksc.2.1.19
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/mksc.2.1.19
    Download Restriction: no
    File URL: https://libkey.io/10.1287/mksc.2.1.19?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jérôme Boutang & Michel de Lara, 2016. "Risk Marketing," Working Papers hal-01353821, HAL.
    2. Krishnamurthi, Lakshman & Raj, S. P. & Sivakumar, K., 1995. "Unique inter-brand effects of price on brand choice," Journal of Business Research, Elsevier, vol. 34(1), pages 47-56, September.
    3. Yaping Wang & Kelly McGuire & Jeremy Terbush & Michael Towns & Chris K. Anderson, 2021. "Choice-Based Dynamic Pricing for Vacation Rentals," Interfaces, INFORMS, vol. 51(6), pages 450-462, November.
    4. Hruschka, Harald & Fettes, Werner & Probst, Markus, 2004. "An empirical comparison of the validity of a neural net based multinomial logit choice model to alternative model specifications," European Journal of Operational Research, Elsevier, vol. 159(1), pages 166-180, November.
    5. Hadjinicola, George C. & Kumar, K. Ravi, 2002. "Modeling manufacturing and marketing options in international operations," International Journal of Production Economics, Elsevier, vol. 75(3), pages 287-304, February.
    6. J. C. Moore & H. Raghav Rao & A. B. Whinston, 1997. "Experimental Strategies for Preference Information Acquisition: A Lattice Path Treatment," Group Decision and Negotiation, Springer, vol. 6(2), pages 139-158, March.
    7. Hruschka, Harald & Fettes, Werner & Probst, Markus, 2004. "Market segmentation by maximum likelihood clustering using choice elasticities," European Journal of Operational Research, Elsevier, vol. 154(3), pages 779-786, May.
    8. Harald Hruschka & Werner Fettes & Markus Probst, 2002. "Die Bewährung von Ankerpreismodellen bei der Erklärung der Markenwahl," Schmalenbach Journal of Business Research, Springer, vol. 54(5), pages 426-441, August.
    9. González-Benito, Óscar & Santos-Requejo, Libia, 2002. "A comparison of approaches to exploit budget allocation data in cross-sectional maximum likelihood estimation of multi-attribute choice models," Omega, Elsevier, vol. 30(5), pages 315-324, October.
    10. Hans H. Bauer & Marc Fischer, 2001. "Ein Ansatz zur simultanen Messung von Kannibalisierungs-, substitutiven Konkurrenz- und Neukäufereffekten am Beispiel von line extensions," Schmalenbach Journal of Business Research, Springer, vol. 53(5), pages 455-477, August.
    11. Jörg Peter Heimel & Harald Hruschka & Martin Natter & Alfred Taudes, 1998. "Konnexionistische Kaufakt- und Markenwahlmodelle," Schmalenbach Journal of Business Research, Springer, vol. 50(7), pages 596-613, July.
    12. Lal, Pankaj & Wolde, Bernabas & Alavalapati, Janaki & Burli, Pralhad & Munsell, John, 2016. "Forestland owners' willingness to plant pine on non-forested land for woody bioenergy in Virginia," Forest Policy and Economics, Elsevier, vol. 73(C), pages 52-57.
    13. Chaab, Jafar & Salhab, Rabih & Zaccour, Georges, 2022. "Dynamic pricing and advertising in the presence of strategic consumers and social contagion: A mean-field game approach," Omega, Elsevier, vol. 109(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:ormksc:v:2:y:1983:i:1:p:19-56. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.