An Ordinal Regression Model Using Dealer Satisfaction Data

Institute for Agricultural Policy and Agricultural Markets Working Paper No. 15

24 Pages Posted: 16 Aug 2007  

Alexander Staus

University of Hohenheim

Date Written: May 2007

Abstract

This article analyses dealer satisfaction data in the agricultural technology market in Germany. The dealers could rate their suppliers in the "overall satisfaction" and in 38 questions which can be summarized in 8 dimensions. An ordinal regression model which is also known as the proportional odds model is used to analyse the ordinal scaled rating of the dealers. The ordinal regression model is a well examined method in econometric theory, but many authors prefer using a linear regression model due to better interpretation, even the assumptions of a linear regression do not fit the data. Since the estimated coefficients of an ordinal regression model can not be properly interpreted we show other methods for a better insight of the relationship of the dealer satisfaction and the influencing variables. These methods are easy to use and it is recommended to list some of them in empirical papers.

Keywords: ordinal regression, dealer satisfaction, interpretation

JEL Classification: C25, C51, Q13

Suggested Citation

Staus, Alexander, An Ordinal Regression Model Using Dealer Satisfaction Data (May 2007). Institute for Agricultural Policy and Agricultural Markets Working Paper No. 15. Available at SSRN: https://ssrn.com/abstract=1007217 or http://dx.doi.org/10.2139/ssrn.1007217

Alexander Staus (Contact Author)

University of Hohenheim ( email )

Fruwirthstr. 48
Stuttgart, 70599
Germany

HOME PAGE: http://www.uni-hohenheim.de/marktlehre

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