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Ownership patterns for durable goods and financial assets: a Rasch analysis

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  • Geoffrey Soutar
  • Steven Cornish-Ward

Abstract

There has been considerable discussion about the way in which consumers purchase durable and financial products and a number of modelling procedures have been used to examine this issue. The present paper outlines a study that used a new and more general scaling approach (the Rasch model) for this purpose, using a larger than usual set of durable goods, as well as a set of financial products. It was found that both sets of products could be analysed using the Rasch model and that there was an inherent order in the data. Further, respondents in the sample followed the same order, suggesting that examining subgroups, as has been done in the past, would be of little use. A set of respondents' backgroundcharacteristics was also collected that measured people's ability and willingness to purchase. It was found that high levels of ownership were related to people's ability to purchase rather than to their willingness to purchase. This suggests that the macro, rather than the micro, environment is likely to be the key to sales for both categories of products.

Suggested Citation

  • Geoffrey Soutar & Steven Cornish-Ward, 1997. "Ownership patterns for durable goods and financial assets: a Rasch analysis," Applied Economics, Taylor & Francis Journals, vol. 29(7), pages 903-911.
    • Handle: RePEc:taf:applec:v:29:y:1997:i:7:p:903-911
    DOI: 10.1080/000368497326561
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    3. Gilbert Ghez & Gary S. Becker, 1975. "The Allocation of Time and Goods over the Life Cycle," NBER Books, National Bureau of Economic Research, Inc, number ghez75-1.
    4. Gilbert Ghez & Gary S. Becker, 1975. "The Allocation of Goods Over the Life Cycle," NBER Chapters, in: The Allocation of Time and Goods over the Life Cycle, pages 46-82, National Bureau of Economic Research, Inc.
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    5. Paas, L.J. & Bijmolt, T.H.A. & Vermunt, J.K., 2004. "Extending dynamic segmentation with lead generation : A latent class Markov analysis of financial product portfolios," Other publications TiSEM 5c26b098-ff27-42d1-a539-e, Tilburg University, School of Economics and Management.
    6. Paas, L.J. & Vermunt, J.K. & Bijmolt, T.H.A., 2007. "Discrete-time discrete-state latent Markov modelling for assessing and predicting household acquisitions of financial products," Other publications TiSEM 5781ab33-6687-4ad5-b57a-3, Tilburg University, School of Economics and Management.
    7. Samy Mansouri, 2021. "Business cycles influences upon customer cross-buying behavior in the case of financial services," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 26(3), pages 181-201, September.
    8. Ann Yang, 2013. "Decision Making for Individual Investors: A Measurement of Latent Difficulties," Journal of Financial Services Research, Springer;Western Finance Association, vol. 44(3), pages 303-329, December.
    9. Ganglmair-Wooliscroft, Alexandra & Wooliscroft, Ben, 2022. "An investigation of sustainable consumption behavior systems – Exploring personal and socio-structural characteristics in different national contexts," Journal of Business Research, Elsevier, vol. 148(C), pages 161-173.
    10. Bijmolt, T.H.A. & Paas, L.J. & Vermunt, J.K., 2003. "Country and Consumer Segmentation : Multi-Level Latent Class Analysis of Financial Product Ownership," Discussion Paper 2003-75, Tilburg University, Center for Economic Research.
    11. Ann Shawing Yang, 2015. "Lottery Payment Cards: A Study of Mental Accounting," Intelligent Systems in Accounting, Finance and Management, John Wiley & Sons, Ltd., vol. 22(3), pages 201-226, July.
    12. Alexandra Ganglmair-Wooliscroft & Ben Wooliscroft, 2019. "Well-Being and Everyday Ethical Consumption," Journal of Happiness Studies, Springer, vol. 20(1), pages 141-163, January.
    13. Paas, Leonard J. & Bijmolt, Tammo H.A. & Vermunt, Jeroen K., 2007. "Acquisition patterns of financial products: A longitudinal investigation," Journal of Economic Psychology, Elsevier, vol. 28(2), pages 229-241, April.
    14. Bijmolt, T.H.A. & Paas, L.J. & Vermunt, J.K., 2003. "Country and Consumer Segmentation : Multi-Level Latent Class Analysis of Financial Product Ownership," Other publications TiSEM 4fa5ac68-96cf-47ca-bc95-b, Tilburg University, School of Economics and Management.
    15. Paas, L.J. & Bijmolt, T.H.A. & Vermunt, J.K., 2004. "Extending dynamic segmentation with lead generation : A latent class Markov analysis of financial product portfolios," Discussion Paper 2004-1, Tilburg University, Center for Economic Research.
    16. Bijmolt, T.H.A. & Paas, L.J. & Vermunt, J.K., 2004. "Country and consumer segmentation : Multi-level latent class analysis of financial product ownership," Other publications TiSEM fb506162-d125-4091-9083-9, Tilburg University, School of Economics and Management.
    17. A. Prinzie & D. Van Den Poel, 2007. "Predicting home-appliance acquisition sequences: Markov/Markov for Discrimination and survival analysis for modeling sequential information in NPTB models," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 07/442, Ghent University, Faculty of Economics and Business Administration.
    18. Ganglmair-Wooliscroft, Alexandra & Wooliscroft, Ben, 2016. "Diffusion of innovation: The case of ethical tourism behavior," Journal of Business Research, Elsevier, vol. 69(8), pages 2711-2720.
    19. Leonard J. Paas & Jeroen K. Vermunt & Tammo H. A. Bijmolt, 2007. "Discrete time, discrete state latent Markov modelling for assessing and predicting household acquisitions of financial products," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 170(4), pages 955-974, October.

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