Integrating Choice Set Formation and Taste Heterogeneity in Market Segmentation
Funding: 2012: $35,000
Project Member(s): Geweke, J.
Funding or Partner Organisation: Kraft Foods Australia Pty Ltd
Motorola Limited (Motorola Mobility Uk Ltd)
Australian Research Council (ARC Linkage Projects)
Start year: 2012
Summary: This research 1) develops a method for identifying the decision rules consumers employ when screening products for purchase and 2) a choice model that incorporates these rules. The findings will provide insight into multi-stage decision processes, such as might be expected in difficult decisions like choice of an automobile, mobile phone, financial service, or vacation destination.The research defines a new method for market segmentation based on both choice set formation and preference heterogeneity, where as existing methods segment only on preference heterogeneity. The models can be used to design products for particular segments or design products across segments.
Keywords: Choice modelling,choice set formation,market segmentation
FOR Codes: Marketing Research Methodology, Expanding Knowledge in Commerce, Management, Tourism and Services, Marketing