Pk. Chintagunta et Ar. Prasad, AN EMPIRICAL-INVESTIGATION OF THE DYNAMIC MCFADDEN MODEL OF PURCHASE TIMING AND BRAND CHOICE - IMPLICATIONS FOR MARKET-STRUCTURE, Journal of business & economic statistics, 16(1), 1998, pp. 2-12
purchase timing and brand-choice decisions of households are jointly i
nvestigated using the ''dynamic McFadden'' model of Heckman and Singer
. The hazard of brand purchase is decomposed into the category purchas
e hazard and the probability of brand choice conditional on category p
urchase. The former is modeled using the hazard-function approach and
the latter using a legit model. Unobserved heterogeneity in brand pref
erences, marketing effects, and baseline hazard parameters is accounte
d for in the empirical analysis. The distribution of preference hetero
geneity identities the locations of brands in multiattribute perceptua
l space and the distribution of attribute importance weights across ho
useholds.