A Latent Class Binomial Logit Methodology for the Analysis of Paired Comparison Choice Data: An Application Reinvestigating the Determinants of Perceived Risk
Decision Sciences, Volume 24, Issue 6, pages 1157–1170, 1993
Posted: 9 Jun 2016
Date Written: December 1, 1993
A latent class model for identifying classes of subjects in paired comparison choice experiments is developed. The model simultaneously estimates a probabilistic classification of subjects and the logit models' coefficients relating characteristics of objects to choices for each respective group among two alternatives in paired comparison experiments. A modest Monte Carlo analysis of algorithm performance is presented. The proposed model is illustrated with empirical data from a consumer psychology experiment that examines the determinants of perceived consumer risk. The predictive validity of the method is assessed and compared to that of several other procedures. The sensitivity of the method to (randomly) eliminate comparisons, which is important in view of reducing respondent fatigue in the task, is investigated.
Keywords: Market Segmentation, Risk & Uncertainty, Statistical Techniques
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