Developing Jypothetical multi attribute table and brief decription - Essay Example

Developing hypothetical multi attribute table and brief Market Response measurement using multinomial and mutiattribute logit In the traditional period, marketers used warehouse withdrawals, consumer dairy panel and store audits in order to supply data on consumer purchases and competitive sales. However, in this century, multinomial and mutiattribute logit is used in measuring market response. Table 1: alternative names and market shares The product attribute which afects purchase decision is price.

The price variable which was used in the product depromoted the price per ounce during purchase time (Ehrenberg, 1972). Depromotion is very crucial as it helps to avoid confusion of effects of price with those of display and advertisng during promotion. The negative coefficient of the price attribute confirms that reduced price increases the probability of purchase. Table 2: The attributesAs deals are quite crucial in the stimulation of purchases for the dealt brand, the addition of promotion attributes should increase the ability of the model to explain the behaviour.

There is no direct measure of promotion in the data. The information provided is on sales, advertising and price (Ehrenberg, 1972). Because it is quite reasonable to expect a promotion to be accompanied by price change, heavy item movement or even advertsing may infer a deal in effect by the presence of any of those. Any of these occurences may not be relieble at all and therefore, the product will be identified through promotion if any only if these tow things are present. The attribute on promotion will be implemented as a dummy variable which will indicate if the product was identified to be on promotion at the time of the purchase.

ReferenceEhrenberg, (1972). Repeat buying: Theory and applications. N. Holland Publsihing Co.