Journal article
A Bayesian Multi-Level Factor Analytic Model of Consumer Price Sensitivities Across Categories
Psychometrika, Vol.75(3), pp.558-578
09/01/2010
DOI: 10.1007/s11336-010-9167-3
Abstract
Identifying price sensitive consumers is an important problem in marketing. We develop a Bayesian multi-level factor analytic model of the covariation among household-level price sensitivities across product categories that are substitutes. Based on a multivariate probit model of category incidence, this framework also allows the researcher to model overall price sensitivity (i.e., indicated by higher-order factor scores) as a function of household-level covariates. All model parameters are estimated simultaneously to circumvent the downward bias resulting from two-stage estimation. The modeling framework is illustrated using scanner panel data from multiple categories of instant coffee.
Details
- Title: Subtitle
- A Bayesian Multi-Level Factor Analytic Model of Consumer Price Sensitivities Across Categories
- Creators
- Sri Devi Duvvuri - University at Buffalo, State University of New YorkThomas S. Gruca - University of Iowa
- Resource Type
- Journal article
- Publication Details
- Psychometrika, Vol.75(3), pp.558-578
- Publisher
- Springer Nature
- DOI
- 10.1007/s11336-010-9167-3
- ISSN
- 0033-3123
- eISSN
- 1860-0980
- Number of pages
- 21
- Language
- English
- Date published
- 09/01/2010
- Academic Unit
- Marketing
- Record Identifier
- 9984380528402771
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