Alternative Methods for Studying Consumer Payment Choice
20 Pages Posted:
Date Written: May 20, 2018
I describe alternative methods for studying consumer payment choice using some machine learning techniques applied to consumer diary survey data. The results are then compared to the more traditional logistic regression methods. Machine learning techniques may have advantages in the actual prediction of payment choice, in visualization of the results, and when applied to high-dimensional data. The logistic regression approach has an advantage if the goal is to interpret the probability that a buyer uses a specific payment instrument.
Keywords: Studying consumer payment choice, statistical learning, machine learning.
JEL Classification: C19, E42.
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