Retrieving unobserved consideration sets from household panel data

E. van Nierop, B.J. Bronnenberg, R. Paap, M. Wedel, P.H. Franses

Research output: Contribution to journalArticleScientificpeer-review

Abstract

The authors propose a new model to capture unobserved consideration from discrete choice data. This approach allows for unobserved dependence in consideration among brands, easily copes with many brands, and accommodates different effects of the marketing mix on consideration and choice as well as unobserved consumer heterogeneity in both processes. An important goal of this study is to establish validity of the existing practice to infer consideration sets from observed choices in panel data. The authors show with experimental data that underlying consideration sets can be reliably retrieved from choice data alone and that consideration is positively affected by display and shelf space. Next, the model is applied to Information Resources Inc. panel data. The findings suggest that promotion effects are larger when they are included in the consideration stage of the two-stage model than in a single-stage model. The authors also find that consideration covaries across brands and that covariation is mainly driven by unobserved consumer heterogeneity. Finally, the authors show the implications of the model for promotion planning relative to a more standard model of choice.
Original languageEnglish
Pages (from-to)63-74
JournalJournal of Marketing Research
Volume47
Issue number1
Publication statusPublished - 2010

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Consideration sets
Household
Panel data
Consumer heterogeneity
Stage model
Discrete choice
Two-stage model
Marketing mix
Information resources
Shelf space
Planning

Cite this

van Nierop, E., Bronnenberg, B. J., Paap, R., Wedel, M., & Franses, P. H. (2010). Retrieving unobserved consideration sets from household panel data. Journal of Marketing Research, 47(1), 63-74.
van Nierop, E. ; Bronnenberg, B.J. ; Paap, R. ; Wedel, M. ; Franses, P.H. / Retrieving unobserved consideration sets from household panel data. In: Journal of Marketing Research. 2010 ; Vol. 47, No. 1. pp. 63-74.
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van Nierop, E, Bronnenberg, BJ, Paap, R, Wedel, M & Franses, PH 2010, 'Retrieving unobserved consideration sets from household panel data', Journal of Marketing Research, vol. 47, no. 1, pp. 63-74.

Retrieving unobserved consideration sets from household panel data. / van Nierop, E.; Bronnenberg, B.J.; Paap, R.; Wedel, M.; Franses, P.H.

In: Journal of Marketing Research, Vol. 47, No. 1, 2010, p. 63-74.

Research output: Contribution to journalArticleScientificpeer-review

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AB - The authors propose a new model to capture unobserved consideration from discrete choice data. This approach allows for unobserved dependence in consideration among brands, easily copes with many brands, and accommodates different effects of the marketing mix on consideration and choice as well as unobserved consumer heterogeneity in both processes. An important goal of this study is to establish validity of the existing practice to infer consideration sets from observed choices in panel data. The authors show with experimental data that underlying consideration sets can be reliably retrieved from choice data alone and that consideration is positively affected by display and shelf space. Next, the model is applied to Information Resources Inc. panel data. The findings suggest that promotion effects are larger when they are included in the consideration stage of the two-stage model than in a single-stage model. The authors also find that consideration covaries across brands and that covariation is mainly driven by unobserved consumer heterogeneity. Finally, the authors show the implications of the model for promotion planning relative to a more standard model of choice.

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