analysis with marketing concept
situation: hotel room select
choice based model (vs rating based model)
why Choice based model(CBM)?
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Many events we want to understand and predict are choices
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Asking direct questions about product preferences(Rating based) often leads to unenlightened answers.
• CBM assumes that customers are not able to express how they weigh separate product attributes.
• CBM assumes customers are affected not only by the focal product’s attributes, but also by the competitors’
By this analysis, we can compute utility(part-worth), willingness to pay, market share
Designing new products: Understand how product features relate to what people will buy (understanding the part-worth)
Pricing: Calculating the willingness-to-pay (WTP).
Determine how price is related to market share.