Consumer Choice of Modularized Products: A Conjoint Choice Experiment Approach

USING CONJOINT CHOICE EXPERIMENTS TO MODEL CONSUMER CHOICES OF PRODUCT COMPONENT PACKAGES, Anders Gustafsson, Andreas Hermann, and Frank Huber, eds., 2001

Posted: 12 Jan 2005

See all articles by Benedict G. C. Dellaert

Benedict G. C. Dellaert

Erasmus University Rotterdam (EUR) - Erasmus School of Economics (ESE); Erasmus Research Institute of Management (ERIM)

A.W.J. Borgers

Eindhoven University of Technology (TUE) - Urban Planning Group

Jordan J. Louviere

University of South Australia - Institute for Choice

Harry J.P. Timmermans

Eindhoven University of Technology (TUE) - Urban Planning Group

Abstract

Recent increases in flexibility and automation in the production of goods and services allow a growing number of suppliers to offer their products in flexible sets of modules from which consumers can create their own individualized packages. This paper addresses the question how consumer choices of such modularized products can be modeled and measured by applying conjoint choice experiments. We analyze conceptually the structure of individual consumers choices of modularized products and the role of the error component in random utility models of these choices. We propose a simple experimental conjoint choice design strategy that can support estimation of this type of models. An empirical illustration in the area of travel package choice is discussed.

JEL Classification: D12, M31

Suggested Citation

Dellaert, Benedict G. C. and Borgers, A.W.J. and Louviere, Jordan J. and Timmermans, Harry J.P., Consumer Choice of Modularized Products: A Conjoint Choice Experiment Approach. USING CONJOINT CHOICE EXPERIMENTS TO MODEL CONSUMER CHOICES OF PRODUCT COMPONENT PACKAGES, Anders Gustafsson, Andreas Hermann, and Frank Huber, eds., 2001, Available at SSRN: https://ssrn.com/abstract=588121

Benedict G. C. Dellaert (Contact Author)

Erasmus University Rotterdam (EUR) - Erasmus School of Economics (ESE) ( email )

P.O. Box 1738
3000 DR Rotterdam, NL 3062 PA
Netherlands

Erasmus Research Institute of Management (ERIM) ( email )

P.O. Box 1738
3000 DR Rotterdam
Netherlands

A.W.J. Borgers

Eindhoven University of Technology (TUE) - Urban Planning Group ( email )

Eindhoven
Netherlands

Jordan J. Louviere

University of South Australia - Institute for Choice ( email )

Level 13
140 Arthur Street
North Sydney, New South Wales 2060
Australia

Harry J.P. Timmermans

Eindhoven University of Technology (TUE) - Urban Planning Group ( email )

Eindhoven
Netherlands

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