Choice, Consideration Sets, and Attribute Filters

Modeling consideration sets and brand choice using artificial neural networks

The concept of consideration sets makes brand choice a two-step process. House-holds first construct a consideration set which not necessarily includes all available brands and conditional on this set they make a final choice. In this paper we put forward a parametric econometric model for this two-step process, where we take into account that consideration sets usually are not observed. It tur...

Rational Inattention, Optimal Consideration Sets and Stochastic Choice∗

We unite two of the most common approaches to modelling limited attention in choice by showing that the rational inattention model (Sims [2003]) implies the formation of consideration sets —only a subset of the available alternatives will be considered for choice. We provide a new set of necessary and suffi cient conditions for rationally inattentive behavior which allow the identification of c...

Vector-Attribute Filters

Attribute-Space Connected Filters

Consideration, Choice and Classifying Loyalty

The authors present an approach to classify a brand’s buyers into groups with varying degrees of loyalty along a continuum from “hard-core loyal” to “hard-core switcher.” A classification scheme is developed based on the joint use of stated consideration set and brand switching data. The resulting loyalty taxonomy yields five mutually exclusive segments: Hard-Core Loyal (HCL), Soft Loyal (SL), ...