JSM 2005 - Toronto

Abstract #302351

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Legend: = Applied Session, = Theme Session, = Presenter
Activity Number: 249
Type: Invited
Date/Time: Tuesday, August 9, 2005 : 10:30 AM to 12:20 PM
Sponsor: Section on Physical and Engineering Sciences
Abstract - #302351
Title: The Design of Stated Choice Experiments
Author(s): Warren F. Kuhfeld*+ and Randall D. Tobias
Companies: SAS Institute, Inc. and SAS Institute, Inc.
Address: S3018 SAS Campus Drive, Cary, NC, 27513,
Keywords: Orthogonal Arrays ; Design of Experiments ; Choice Model ; Multinomial Logit
Abstract:

Marketing research and choice modeling are increasingly becoming concerns for statisticians in industry. Choice designs define sets of products that vary in brand, price, and a variety of product-specific attributes. Subjects choose between the alternative products, just as consumers choose products from a shelf. Choice modeling is used to understand attribute importance, how the attributes influence choice, and how to design products that maximize consumer interest and profit. The experimental designs for choice models are often quite large and complex relative to most other DOE applications. This is because the designs must realistically represent a complex marketplace, the cost of data collection is relatively low, and choice designs consist of sets of products with one factor for every attribute in every set. In this paper, we introduce the problem of designing choice experiments and discuss a general approach that uses both combinatorial methods and integer optimization to make a huge variety of both regular and nonregular designs, including highly restricted designs.


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Revised March 2005