Likelihood estimation of consumer preferences in choice-based conjoint analysis
An estimation method is proposed for value functions in choice based conjoint analysis. The method employs a likelihood function based on three sources of uncertainty. For individual choices we adopt multinomial logit with heterogeneous scale parameters. Interdependence of preferences is modeled using a multivariate normal distribution. The method exceeds average prediction performance of HB in 12 field data sets.
conjoint analysis utility function preference estimation maximum likelihood marketing research