Do We Halo or Form? A Bayesian Mixture Model for Customer Satisfaction Data

52 Pages Posted: 5 Jun 2010 Last revised: 28 Jun 2012

Joachim Bueschken

Catholic University of Eichstätt-Ingolstadt

Thomas Otter

Goethe University Frankfurt - Department of Marketing

Greg M. Allenby

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

Date Written: June 5, 2010

Abstract

Identifying the drivers of overall customer satisfaction assumes that the component scores can be uniquely recalled and reported from memory. If the component scores are a reflection of an overall measure, such as with haloed responses, instead of containing independent information on its formation, then they should not be used in a driver analysis. There is likely a mixture of formed and haloed responses in all surveys of satisfaction, which potentially distorts inferences about the relationship between the component scores and the overall measure of satisfaction. In this paper we develop a Bayesian mixture model that effectively separates out the haloed responses and apply it to two customer satisfaction datasets. The proposed model results in improved fit to the data, stronger driver effects, and more reasonable inferences.

Keywords: Bayesian Estimation, Customer Satisfaction, Surveys

Suggested Citation

Bueschken, Joachim and Otter, Thomas and Allenby, Greg M., Do We Halo or Form? A Bayesian Mixture Model for Customer Satisfaction Data (June 5, 2010). Fisher College of Business Working Paper No. 1620863. Available at SSRN: https://ssrn.com/abstract=1620863 or http://dx.doi.org/10.2139/ssrn.1620863

Joachim Bueschken (Contact Author)

Catholic University of Eichstätt-Ingolstadt ( email )

Auf der Schanz 49
Ingolstadt, D-85049
Germany
+498419371976 (Phone)
+498419372976 (Fax)

HOME PAGE: http://www.wfi.edu/mkt

Thomas Otter

Goethe University Frankfurt - Department of Marketing ( email )

Frankfurt
Germany
++49.69.798.34646 (Phone)

HOME PAGE: http://www.marketing.uni-frankfurt.de/index.php?id=97?&L=1

Greg M. Allenby

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

Fisher Hall 524
2100 Neil Ave
Columbus, OH 43210
United States

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