Compensatory versus noncompensatory models for predicting consumer preferences
Journal Title: Judgment and Decision Making - Year 2009, Vol 4, Issue 3
Abstract
Standard preference models in consumer research assume that people weigh and add all attributes of the available options to derive a decision, while there is growing evidence for the use of simplifying heuristics. Recently, a greedoid algorithm has been developed (Yee, Dahan, Hauser & Orlin, 2007; Kohli & Jedidi, 2007) to model lexicographic heuristics from preference data. We compare predictive accuracies of the greedoid approach and standard conjoint analysis in an online study with a rating and a ranking task. The lexicographic model derived from the greedoid algorithm was better at predicting ranking compared to rating data, but overall, it achieved lower predictive accuracy for hold-out data than the compensatory model estimated by conjoint analysis. However, a considerable minority of participants was better predicted by lexicographic strategies. We conclude that the new algorithm will not replace standard tools for analyzing preferences, but can boost the study of situational and individual differences in preferential choice processes.
Authors and Affiliations
Anja Dieckmann, Katrin Dippold, and Holger Dietrich
Cross-national in-group favoritism in prosocial behavior: Evidence from Latin and North America
As individuals from different nations increasingly interact with each other, research on national in-group favoritism becomes particularly vital. In a cross-national, large-scale study (N = 915) including representative...
Moody experts — How mood and expertise influence judgmental anchoring
Anchoring effects, the assimilation of numerical estimates to previously considered standards, are highly robust. Two studies examined whether mood and expertise jointly moderate the magnitude of anchoring. Previous rese...
Revealed strength of preference: Inference from response times
Revealed preference is the dominant approach for inferring preferences, but it is limited in that it relies solely on discrete choice data. When a person chooses one alternative over another, we cannot infer the strength...
Lay understanding of probability distributions
How accurate are laypeople’s intuitions about probability distributions of events? The economic and psychological literatures provide opposing answers. A classical economic view assumes that ordinary decision makers cons...
Liberal-conservative differences in inclusion-exclusion strategy choice
Inclusion and exclusion strategies for allocation of scarce goods involve different processes. The conditions under which one strategy is chosen in favor of the other, however, have not been fully explicated. In the pres...