ESTIMATING THE SEGMENT-ORIENTED DISCRETE-CHOICE MODEL OF CUSTOMER DIFFERENTIATION

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ABDOLVAND M.A.; NAZEMI J.; MOMENI H.A.

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Journal: Journal of Management Future Research Year:2011 | Volume:21 | Issue:87 Page(s): 95-111

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Information Journal Paper

Title

ESTIMATING THE SEGMENT-ORIENTED DISCRETE-CHOICE MODEL OF CUSTOMER DIFFERENTIATION

Author(s)

ABDOLVAND M.A. | NAZEMI J. | MOMENI H.A. | Issue Writer Certificate

Keywords

DISCRETE CHOICEQ2

SEGMENTATIONQ1

PRINCIPAL COMPONENT ANALYSISQ2

MULTINOMIAL LOGITQ3

Abstract

In product choice models, incorporating socio-demographic characteristics is conceptually appealing and has numerous managerial benefits. The main question is how socio-demographic characteristics differentiate customers or products in order to define relevant marketing strategies. Traditionally DISCRETE CHOICE models, also called the consolidated approach, have been used to understand, describe, and predict consumer choices for a particular product. In this study, a segment-oriented approach is introduced and compared with the consolidated approach. The proposed methodology uses PRINCIPAL COMPONENT ANALYSIS to segment the population into different groups. The results indicate that PRINCIPAL COMPONENT ANALYSIS is a robust method and outperforms the consolidated approach in terms of choice predictability and R-square index. These findings bring new insight to manufacturers as well as marketers regarding customer policies targeting.

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APA: Copy

ABDOLVAND, M.A., NAZEMI, J., & MOMENI, H.A.. (2011). ESTIMATING THE SEGMENT-ORIENTED DISCRETE-CHOICE MODEL OF CUSTOMER DIFFERENTIATION. JOURNAL OF MANAGEMENT FUTURES RESEARCH(JOURNAL OF MANAGEMENT RESEARCH), 21(87), 95-111. SID. https://sid.ir/paper/204125/en

Vancouver: Copy

ABDOLVAND M.A., NAZEMI J., MOMENI H.A.. ESTIMATING THE SEGMENT-ORIENTED DISCRETE-CHOICE MODEL OF CUSTOMER DIFFERENTIATION. JOURNAL OF MANAGEMENT FUTURES RESEARCH(JOURNAL OF MANAGEMENT RESEARCH)[Internet]. 2011;21(87):95-111. Available from: https://sid.ir/paper/204125/en

IEEE: Copy

M.A. ABDOLVAND, J. NAZEMI, and H.A. MOMENI, “ESTIMATING THE SEGMENT-ORIENTED DISCRETE-CHOICE MODEL OF CUSTOMER DIFFERENTIATION,” JOURNAL OF MANAGEMENT FUTURES RESEARCH(JOURNAL OF MANAGEMENT RESEARCH), vol. 21, no. 87, pp. 95–111, 2011, [Online]. Available: https://sid.ir/paper/204125/en

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