A Multiple Ideal Point Model: Capturing Multiple Preference Effects from within an Ideal Point Framework

40 Pages Posted: 23 Oct 2001

See all articles by Jack K. H. Lee

Jack K. H. Lee

City University of New York - Department of Marketing and International Business

K. Sudhir

Yale School of Management; Yale University-Department of Economics; Yale University - Cowles Foundation

Joel Steckel

New York University (NYU) - Department of Marketing

Date Written: May 2001

Abstract

Previous research has suggested that households and individuals may possess multiple preferences for a given product category. These multiple preferences may be the result of multiple individuals, different uses and usage occasions, and/or variety seeking. As such, single ideal point models that assume a single invariant ideal point may be operating from a false and misleading assumption. We propose a Multiple Ideal Point Model to capture these multiple preference effects. The basic premise of the model is that consumers may possess a set of ideal points, each of which represents a distinct preference. At any given purchase occasion, one of these points is "activated" with some probability and choices are made with respect to its characteristics. In this paper, the Multiple Ideal Point Model and an associated estimation procedure are assessed with respect to its ability to recover a true choice structure. We then empirically test the model on IRI panel data from the powdered soft drink category. The results are discussed and directions for future research are introduced.

Keywords: Multidimensional Scaling, Variety Seeking, Inertia

JEL Classification: C23, D12

Suggested Citation

Lee, Jack K. H. and Sudhir, K. and Steckel, Joel, A Multiple Ideal Point Model: Capturing Multiple Preference Effects from within an Ideal Point Framework (May 2001). Yale SOM Working Paper No. MK-08. Available at SSRN: https://ssrn.com/abstract=286171 or http://dx.doi.org/10.2139/ssrn.286171

Jack K. H. Lee

City University of New York - Department of Marketing and International Business ( email )

One Bernard Baruch Way, B12-240
New York, NY 10010-5585
United States
212-802-6487 (Phone)
212-802-6483 (Fax)

K. Sudhir (Contact Author)

Yale School of Management ( email )

135 Prospect Street
P.O. Box 208200
New Haven, CT 06520-8200
United States
203-432-3289 (Phone)
203-432-3003 (Fax)

Yale University-Department of Economics ( email )

28 Hillhouse Ave
New Haven, CT 06520-8268
United States

Yale University - Cowles Foundation ( email )

Box 208281
New Haven, CT 06520-8281
United States

Joel Steckel

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

Tisch Hall
40 W 4 St.
New York, NY 10012
United States
2129980521 (Phone)

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