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D-optimal conjoint choice designs with no-choice options for a nested logit model

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  • GOOS, Peter
  • VERMEULEN, Bart
  • VANDEBROEK, Martina

Abstract

Despite the fact that many conjoint choice experiments offer respondents a no-choice option in every choice set, the optimal design of conjoint choice experiments involving no-choice options has received only a limited amount of attention in the literature. In this article, we present an approach to construct D-optimal designs for this type of experiment. For that purpose, we derive the information matrix of a nested multinomial logit model that is appropriate for analyzing data from choice experiments with no-choice options. The newly derived information matrix is compared to the information matrix for the multinomial logit model that is used in the literature to construct designs for choice experiments. It is also used to quantify the loss of information in a choice experiment due to the presence of a no-choice option.

Suggested Citation

  • GOOS, Peter & VERMEULEN, Bart & VANDEBROEK, Martina, 2008. "D-optimal conjoint choice designs with no-choice options for a nested logit model," Working Papers 2008020, University of Antwerp, Faculty of Business and Economics.
    • Handle: RePEc:ant:wpaper:2008020
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    References listed on IDEAS

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    3. Dhar, Ravi, 1997. "Consumer Preference for a No-Choice Option," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 24(2), pages 215-231, September.
    4. Kessels, Roselinde & Goos, Peter & Vandebroek, Martina, 2008. "Optimal designs for conjoint experiments," Computational Statistics & Data Analysis, Elsevier, vol. 52(5), pages 2369-2387, January.
    5. Heiko Großmann & Heinz Holling & Ulrike Graßhoff & Rainer Schwabe, 2006. "Optimal Designs for Asymmetric Linear Paired Comparisons with a Profile Strength Constraint," Metrika: International Journal for Theoretical and Applied Statistics, Springer, vol. 64(1), pages 109-119, August.
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    Cited by:

    1. Vermeulen, Bart & Goos, Peter & Vandebroek, Martina, 2008. "Models and optimal designs for conjoint choice experiments including a no-choice option," International Journal of Research in Marketing, Elsevier, vol. 25(2), pages 94-103.

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    Keywords

    Choice-based conjoint; Information loss; Multinomial logit model; Nested logit model; No-choice option;
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