Discrete Choice Modeling
Discrete choice modeling is ideal for (a) product categories where only one purchase is made over a longer period of time (for example, durable goods, credit cards, cellular phones, etc.) and (b) complex products (i.e., products with many different possible features). In these carefully controlled experiments, current and potential customers are asked which one product they would buy, given a realistic scenario including all of the products or services that compete with one another in the marketplace. In each scenario, the respondent is presented with a different set of marketing stimuli and asked which brand or product would be purchased. The type of decision that the respondents make in each scenario is designed to mimic the real market, and again each variables’ importance is being determined implicitly.