Abstract

http://ssrn.com/abstract=2072496
 


 



Models of Sequential Evaluation in Best-Worst Choice Tasks


Tatiana Dyachenko


Ohio State University (OSU) - Fisher College of Business

Rebecca Walker Naylor


Ohio State University (OSU) - Department of Marketing and Logistics

Greg M. Allenby


Ohio State University (OSU) - Department of Marketing and Logistics

February 10, 2014

Fisher College of Business Working Paper No. 2072496

Abstract:     
We examine the nature of best-worst data for modeling consumer preferences and predicting their choices. We show that, contrary to the assumption of widely used models, the best and worst responses do not originate from the same data-generating process. We propose a sequential evaluation model and show that later choices have systematically larger coefficients as compared to earlier choices. We also find the presence of an elicitation effect that leads to larger coefficients when respondents are asked to select the worst alternative, meaning that respondents are surer about what they like least than what they like most. Finally, we investigate global inference retrieval in choice tasks, which can be represented by the central limit theorem and normally distributed errors, versus episodic retrieval represented by extreme value errors. We find that both specifications of the error term are plausible and advise to use the proposed sequential logit model for practical reasons. We apply our model to data from a national survey investigating the concerns associated with hair care. We find that accounting for the sequential evaluation in the best-worst tasks and the presence of the scaling effects leads to different managerial implications compared to the results from currently used models.

Number of Pages in PDF File: 63

Keywords: Bayesian estimation, psychological models, choice models

JEL Classification: C11, C25, M31

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Date posted: June 2, 2012 ; Last revised: February 21, 2014

Suggested Citation

Dyachenko, Tatiana and Naylor, Rebecca Walker and Allenby, Greg M., Models of Sequential Evaluation in Best-Worst Choice Tasks (February 10, 2014). Fisher College of Business Working Paper No. 2072496. Available at SSRN: http://ssrn.com/abstract=2072496 or http://dx.doi.org/10.2139/ssrn.2072496

Contact Information

Tatiana Dyachenko (Contact Author)
Ohio State University (OSU) - Fisher College of Business ( email )
2100 Neil Avenue
Columbus, OH 43210-1144
United States
Rebecca Walker Naylor
Ohio State University (OSU) - Department of Marketing and Logistics ( email )
2100 Neil Avenue
538 Fisher Hall
Columbus, OH 43210
United States
Greg M. Allenby
Ohio State University (OSU) - Department of Marketing and Logistics ( email )
2100 Neil Avenue
Columbus, OH 43210-1144
United States

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