Revista Egitania Sciencia - Volume 4 | ARTICLE

Title: BRAND CHOICE BEHAVIOUR: AN APPLICATION OF A LATENT CLASS MODEL

Author: Begoña Peral Peral *(bperal@us.es) e Encarnación Ramos Hidalgo ** (chon@us.es)

Publication: Revista Egitania Sciencia - Volume 4

Abstract:
The objective of this study is to analyse whether households demonstrate homogeneous behaviour in their brand choice, independent of the product category acquired. To do so, we analyse the effect of intrinsic brand preferences, price and initial state dependence over their purchase behaviour in two variable product categories to determine the differing influences of these attributes in distinct consumer segments. Specifically, we analyze whether price sensitivity is independent of the product purchased. To fulfil the objectives of this study, within the framework of discrete choice models of random utility, we opted for a latent class or finite mixture model.

Keywords: consumer behaviour, panel data, discrete choice models




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