People’s resources are limited. The day is 24 hours long. Our income provides a limit on what we can spend.
People make trade-offs between spending here versus there, doing this versus that, going here versus there.
We live in a world of constraints that, for some, has only gotten worse in the time of COVID-19.
Marketers study the choices that people make, but rarely, if ever, do we examine those choices under the constraint of a budget.
Yet it’s clear that people will try to maximize the benefits from the choices they make but will do so under the constraints of money or time.
In this talk, we compare the predictions from a standard Discrete Choice Model (DCM) to a new approach that we call Constrained Discrete Choice (CDC).
We show that while the results of the standard approach and CDC will fit data equally well, the predictions from CDC make more sense from the perspectives of predicted choice shares, price sensitivity, and targeting.
Think hard. If your company’s products or services are bought under money or time constraints, the CDC is a better option for understanding choice.
Please Note: This webinar is intended solely for client-side researchers and members of academia.