Investigation of the Stochastic Utility Maximization Process of Consumer Brand Choice by Semiparametric Modeling

Makoto Abe, Yasemin Boztuğ & Lutz Hildebrandt
The use of nonparametric methods, which posit fewer assumptions and greater model flexibility than parametric methods, could provide useful insights when studying brand choice. It was found, however, that the data requirement for a fully nonparametric brand choice model is so great that obtaining such large data sets is difficult even in marketing. Semiparametric methods balance model flexibility and data requirement by imposing some parametric structure on components that are not sensitive to such assumptions...
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