Modeling the Intra Household Behavioral Interaction

45 Pages Posted: 17 Mar 2009

See all articles by Sha Yang

Sha Yang

University of Southern California - Marshall School of Business

Yi Zhao

Georgia State University - Department of Marketing

Tulin Erdem

New York University (NYU) - Leonard N. Stern School of Business; New York University (NYU) - Department of Marketing

Ying Zhao

Hong Kong University of Science & Technology (HKUST)

Date Written: February 25, 2009

Abstract

Quantitative models in marketing typically focus on the household as the unit of analysis while ignoring the individual family members' behavior and behavioral interactions among household members. However, knowledge of such intra-household behavioral interaction enables marketers to target their communications more effectively. In this paper, we propose a modeling framework to capture the intra-household behavioral interaction based on family members' actual consumption behavior over time. We develop a model to capture multiple agents' (more than two individuals') simultaneous choice decisions over more than two choice alternatives. This is extremely difficult with other previously developed modeling approaches. We apply the proposed model to a context of family member's television viewing, and simultaneously model whether TV is on, which type of programs is playing and which family member(s) is(are) watching. The proposed model allows us to estimate the individual's intrinsic preference and the extrinsic preference from a joint consumption with other members. These estimates allow us to test several alternative group decision-making heuristics that may operate in those joint consumption occasions and conduct managerially useful counterfactual simulations.

Keywords: Autologistic choice model, Joint Consumption, Behavioral interaction, Family member decision-making, and Hierarchical Bayesian analysis

JEL Classification: C11, C35, M31

Suggested Citation

Yang, Sha and Zhao, Yi and Erdem, Tulin and Zhao, Ying, Modeling the Intra Household Behavioral Interaction (February 25, 2009). Available at SSRN: https://ssrn.com/abstract=1349248 or http://dx.doi.org/10.2139/ssrn.1349248

Sha Yang (Contact Author)

University of Southern California - Marshall School of Business ( email )

701 Exposition Blvd
Los Angeles, CA 90089
United States

Yi Zhao

Georgia State University - Department of Marketing ( email )

United States

Tulin Erdem

New York University (NYU) - Leonard N. Stern School of Business ( email )

44 West 4th Street
Suite 9-160
New York, NY NY 10012
United States

New York University (NYU) - Department of Marketing ( email )

Henry Kaufman Ctr
44 W 4 St.
New York, NY
United States

Ying Zhao

Hong Kong University of Science & Technology (HKUST) ( email )

Kowloon, 999999

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