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Multivariate Logit and Probit models for simultaneous purchases: Presentation, uses, appeal and limitations

Author

Listed:
  • Philippe Aurier

    (MRM - Montpellier Research in Management - UM1 - Université Montpellier 1 - UPVM - Université Paul-Valéry - Montpellier 3 - UM2 - Université Montpellier 2 - Sciences et Techniques - UPVD - Université de Perpignan Via Domitia - Groupe Sup de Co Montpellier (GSCM) - Montpellier Business School)

  • Victor Mejia

    (GRM - Groupe de Recherche en Management - EA 4711 - UNS - Université Nice Sophia Antipolis (1965 - 2019) - UniCA - Université Côte d'Azur)

Abstract

This article presents Multivariate Logit (MVL) and Probit (MVP) models, which make it possible to analyse simultaneous purchases and relax the restrictive hypothesis that utility maximization leads to a single choice. These models enable a deeper analysis of competitive dynamics in a given category (variety seeking, complementarity, substitutability). The MVL model using a random parameter specification is illustrated in relation to the chocolate category. We underline the advantages and limitations of these models and propose new research avenues.

Suggested Citation

  • Philippe Aurier & Victor Mejia, 2014. "Multivariate Logit and Probit models for simultaneous purchases: Presentation, uses, appeal and limitations," Post-Print hal-02014789, HAL.
    • Handle: RePEc:hal:journl:hal-02014789
    DOI: 10.1177/2051570714535531
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    Cited by:

    1. Caiati, Valeria & Rasouli, Soora & Timmermans, Harry, 2020. "Bundling, pricing schemes and extra features preferences for mobility as a service: Sequential portfolio choice experiment," Transportation Research Part A: Policy and Practice, Elsevier, vol. 131(C), pages 123-148.
    2. Kilders, Valerie & Caputo, Vincenzina & Liverpool-Tasie, Lenis Saweda O., 2021. "Consumer ethnocentric behavior and food choices in developing countries: The case of Nigeria," Food Policy, Elsevier, vol. 99(C).
    3. Ma, Wanglin & Zheng, Hongyun & Gong, Binlei, 2022. "Rural income growth, ethnic differences, and household cooking fuel choice: Evidence from China," Energy Economics, Elsevier, vol. 107(C).
    4. Philippe Aurier & Victor D. Mejía, 2021. "The differing impacts of brand-line breadth and depth on customers’ repurchasing behavior of frequently purchased packaged goods," Journal of the Academy of Marketing Science, Springer, vol. 49(6), pages 1244-1266, November.
    5. Harald Hruschka, 2022. "Analyzing joint brand purchases by conditional restricted Boltzmann machines," Review of Managerial Science, Springer, vol. 16(4), pages 1117-1145, May.

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