Methodology of Preference Measurement. Prediction of Consumer Choice
Abstract
A model is presented for predicting the proportion of consumers who purchase each of three competing objects differing in price. The model is applied to predict proportions of consumers purchasing each of three luncheon entrees on several criterion days. Preference parameters are estimated from responses to a food preference schedule by a least squares method of successive intervals; an iterative solution is utilized for estimating the utility of each price level. Results indicate that the model is tenable, and suggest a non-monotonic relationship between utility of price and monetary price level within the range of prices investigated.
Document Details
- Document Type
- Technical Report
- Publication Date
- Jul 31, 1956
- Accession Number
- AD0617921
Entities
People
- Lyle V. Jones
Organizations
- University of Chicago