ABSTRACT: Continuous models of respondent heterogeneity assume the existence of a response function where variables of interest are
continuously related to explanatory variables. In many situations this assumption may not be true. In this paper we propose
an approach of modeling respondent heterogeneity that identifies abrupt changes in the distribution of response coefficients
around a threshold specification. Our model differs from traditional threshold models by introducing the threshold effect
to describe across-unit behavior as opposed to within-unit behavior. We illustrate our proposed Bayesian threshold model for
survey data from a large national retail bank that examines the effects of service wait times on customer satisfaction. We
find evidence of a threshold effect where long in-process wait times are associated with bank branches characterized by weak
associations between service quality drivers and overall perceptions of service quality. Branches with wait times below the
threshold are found to have much stronger associations.
KeywordsThreshold model–Mixture distribution–Service wait times–Drivers of service quality
Marketing Letters 04/2012; 22(2):133-146. · 0.63 Impact Factor
ABSTRACT: A dynamic factor model of brand satiation is developed to explain longitudinal variation in consumer purchases. Factor loadings are associated with a brand’s position along a satiation dimension, and factor scores are associated with a household’s sensitivity to satiation effects. Dynamics are introduced by allowing the factor scores to evolve through time, reflecting variation in household satiation sensitivity. The factor model is imbedded within a direct utility model that allows for both corner and interior solutions, and is shown to fit the data better than alternative specifications. Analysis of a panel dataset of yogurt purchases indicates that household satiation is, in general, temporally accelerating. Implications for product line assortment are explored.
MKTG: Consumer Behavior (Sub-Topic). 03/2011;
Marketing Science. 01/2011; 30:123-133.
Marketing Science. 01/2011; 30:61-73.
Marketing Science. 01/2011; 30:74-91.
Marketing Science. 01/2010; 29:895-908.