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An Ordinal Regression Model using Dealer Satisfaction Data

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  • Staus, Alexander

Abstract

This article analyses dealer satisfaction data in the agricultural technology market in Germany. The dealers could rate their suppliers in the ’overall satisfaction’ and in 38 questions which can be summarized in 8 dimensions. An ordinal regression model which is also known as the proportional odds model is used to analyse the ordinal scaled rating of the dealers. The ordinal regression model is a well examined method in econometric theory, but many authors prefer using a linear regression model due to better interpretation, even the assumptions of a linear regression do not fit the data. Since the estimated coefficients of an ordinal regression model can not be properly interpreted we show other methods for a better insight of the relationship of the dealer satisfaction and the influencing variables. These methods are easy to use and it is recommended to list some of them in empirical papers.

Suggested Citation

  • Staus, Alexander, 2007. "An Ordinal Regression Model using Dealer Satisfaction Data," Working Papers 98632, Universitaet Hohenheim, Institute of Agricultural Policy and Agricultural Markets.
    • Handle: RePEc:ags:uhgewp:98632
    DOI: 10.22004/ag.econ.98632
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    1. Becker, Tilman C., 2006. "Die CMA auf dem Prüfstand," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 55(08), pages 1-7.
    2. Philip Hans Franses & J.S. Cramer, 2010. "On the number of categories in an ordered regression model," Statistica Neerlandica, Netherlands Society for Statistics and Operations Research, vol. 64(1), pages 125-128, February.
    3. Heidecke, Sandra-Jasmin & Benner, Eckhard, 2005. "Grundpreisaufschläge bei Groß- und Familienpackungen - eine empirische Untersuchung im deutschen und französischen Lebensmitteleinzelhandel -," Working Papers 98637, Universitaet Hohenheim, Institute of Agricultural Policy and Agricultural Markets.
    4. Benner, Eckhard & Kliebisch, Christoph, 2004. "Regio-Marketing-Strategien des Lebensmitteleinzelhandels," Working Papers 98638, Universitaet Hohenheim, Institute of Agricultural Policy and Agricultural Markets.
    5. Elsasser, Andrea & Benner, Eckhard & Becker, Tilman C., 2006. "Marketing auf Wochenmärkten," Working Papers 98634, Universitaet Hohenheim, Institute of Agricultural Policy and Agricultural Markets.
    6. Rory Wolfe & William Gould, 1998. "An approximate likelihood-ratio test for ordinal response models," Stata Technical Bulletin, StataCorp LP, vol. 7(42).
    7. Benner, Dietrich, 2004. "Quality Ambiguity and the Market Mechanism for Credence Goods," Working Papers 98639, Universitaet Hohenheim, Institute of Agricultural Policy and Agricultural Markets.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Agricultural and Food Policy; Marketing;

    JEL classification:

    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness

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