Revealing additional preference heterogeneity with an extended random parameter logit model: the case of extra virgin olive oil

Methods that account for preference heterogeneity have received a significant amount of attention in recent literature. Most of them have focused on preference heterogeneity around the mean of the random parameters, which has been specified as a function of socio-demographic characteristics. This paper aims at analyzing consumers' preferences towards extra-virgin olive oil in Catalonia using a methodological framework with two novelties over past studies: 1) it accounts for both preference heterogeneity around the mean and the variance; and 2) it considers both socio-demographic characteristics of consumers as well as their attitudinal factors. Estimated coefficients and moments of willingness to pay (WTP) distributions are compared with those obtained from alternative Random Parameter Logit (RPL) models. Results suggest that the proposed framework increases the goodness-of-fit and provides more useful insights for policy analysis. The most important attributes affecting consumers' preferences towards extra virgin olive oil are the price and the product's origin. The consumers perceive the organic olive oil attribute negatively, as they think that it is not worth paying a premium for a product that is healthy in nature.Postprint (published version

Psychological elements explaining the consumer's adoption and use of a website recommendation system: A theoretical framework proposal

The purpose of this paper is to understand, with an emphasis on the psychological perspective of the research problem, the consumer's adoption and use of a certain web site recommendation system as well as the main psychological outcomes involved. The approach takes the form of theoretical modelling. Findings: A conceptual model is proposed and discussed. A total of 20 research propositions are theoretically analyzed and justified. Research limitations/implications: The theoretical discussion developed here is not empirically validated. This represents an opportunity for future research. Practical implications: The ideas extracted from the discussion of the conceptual model should be a help for recommendation systems designers and web site managers, so that they may be more aware, when working with such systems, of the psychological process consumers undergo when interacting with them. In this regard, numerous practical reflections and suggestions are presented

Demand-side solutions for climate mitigation: Bottom-up drivers of household energy behavior change in the Netherlands and Spain

© 2019 The Authors Households are responsible for 70% of CO2 emissions (directly and indirectly). While households as agents of change increasingly become a crucial element in energy transitions, bottom-up mechanisms facilitating behavioral change are not fully understood. A scientific understanding of individual energy use, requires eliciting factors that trigger or inhibit changes in energy behavior. This paper explores individual energy consumption practices and behavioral aspects that affect them. We quantitatively study the determinants of three energy actions: (1) investments in house insulation, solar panels and/or energy-efficient appliances, (2) conservation of energy by changing energy-use habits like switching off unused devices or adjusting house temperature, and (3) switching to green(er) electricity sources. To address this goal, we conduct a comprehensive survey among households (N = 1790) in two EU regions: Overijssel, the Netherlands and Navarre, Spain. We use probit regression to estimate how behavioral factors, households’ socioeconomic characteristics and structural attributes of dwellings influence energy related actions. Our analysis demonstrates that awareness and personal and social norms are as important as monetary factors. Moreover, education and structural dwelling factors significantly affect households’ actions. These results have implications for governmental policies aimed at reducing residential CO2 footprints and facilitating demand-side solutions in a transition to low-carbon economy

Discrete Choices under Social Influence: Generic Properties

We consider a model of socially interacting individuals that make a binary choice in a context of positive additive endogenous externalities. It encompasses as particular cases several models from the sociology and economics literature. We extend previous results to the case of a general distribution of idiosyncratic preferences, called here Idiosyncratic Willingnesses to Pay (IWP). Positive additive externalities yield a family of inverse demand curves that include the classical downward sloping ones but also new ones with non constant convexity. When j, the ratio of the social influence strength to the standard deviation of the IWP distribution, is small enough, the inverse demand is a classical monotonic (decreasing) function of the adoption rate. Even if the IWP distribution is mono-modal, there is a critical value of j above which the inverse demand is non monotonic, decreasing for small and high adoption rates, but increasing within some intermediate range. Depending on the price there are thus either one or two equilibria. Beyond this first result, we exhibit the generic properties of the boundaries limiting the regions where the system presents different types of equilibria (unique or multiple). These properties are shown to depend only on qualitative features of the IWP distribution: modality (number of maxima), smoothness and type of support (compact or infinite). The main results are summarized as phase diagrams in the space of the model parameters, on which the regions of multiple equilibria are precisely delimited.Comment: 42 pages, 15 figure

Arrow Index of Fuzzy Choice Function

The Arrow index of a fuzzy choice function C is a measure of the degree to which C satisfies the Fuzzy Arrow Axiom, a fuzzy version of the classical Arrow Axiom. The main result of this paper shows that A(C) characterizes the degree to which C is full rational. We also obtain a method for computing A(C). The Arrow index allows to rank the fuzzy choice functions with respect to their rationality. Thus, if for solving a decision problem several fuzzy choice functions are proposed, by the Arrow index the most rational one will be chosen.Fuzzy choice function, revealed preference indicator, congruence indicator, similarity

Applying the Fuzzy Analytic Network Process to Establish the Relative Importance of Knowledge Sharing Barriers

Knowledge sharing (KS) is the key to creativity and innovation in any organizations. Overcoming the KS barriers has created new challenges for designing in dynamic and complex environment. There may be interrelations and interdependences among the barriers. The purpose of this paper is to present a review of literature of KS barriers and impute the relative importance of them through the fuzzy analytic network process that is a generalization of the analytical hierarchy process (AHP). It helps to prioritize the barriers to find ways to remove them to facilitate KS. The study begins with a brief description of KS barriers and the most critical ones. The FANP and its role in identifying the relative importance of KS barriers are explained. The paper, then, proposes the model for research and expected outcomes. The study suggests that the use of the FANP is appropriate to impute the relative importance of KS barriers which are intertwined and interdependent. Implications and future research are also propose

Love me do, love me don't : factor drivers, development and consequences of brand love : a comparison between Portugal and the USA

Os consumidores referem-se muitas vezes às suas marcas favoritas como marcas que amam e o amor é, como alguém diria, a única coisa de que necessitamos. Assim, gestores e investigadores apressaram-se a cunhar o termo “brand love”. Hoje, esse conceito é utilizado como um termo holístico que se encontra ligado a emoções intensas o que, combinado com atitudes como intenção de compra e experiência de utilização, conduzem a comportamentos positivos. Ainda assim, este termo valioso permanece por se tornar num constructo estabelecido e consensual. Adicionalmente, o estado-da-arte atual do conhecimento de “brand love” não permite, ainda, aos gestores e investigadores perceberem se as dimensões fundacionais do referido constructo variam de marca para marca e/ou até, de país para país. Esta investigação pretende assim caracterizar as dimensões do “brand love” e o seu impacto em variáveis de mercado, bem como, perceber as variações que existem entre marcas de categorias diferentes e consumidores originários de países diferentes. Com recurso ao método de modelação de equação estrutural na escala avaliada no inquérito, é proposto um modelo de “brand love” que é composto por uma dimensão de segunda ordem, paixão e outras dimensões de primeira ordem como compromisso, integração da marca na própria personalidade e perspetiva de longo prazo. O modelo inclui ainda variáveis de mercado como lealdade à marca, passa-palavra positivo e compromisso com a marca como consequências de “brand love”. Os nossos resultados permitem-nos identificar diferenças no modelo relativamente às subsequentes variáveis de mercado, de acordo com as variações quer de categoria, quer de país. Discutimos os resultados à luz das diferenças organizacionais e culturais propostas por Hofstede. Concluímos este trabalho apresentando as implicações teóricas e de gestão para a construção de marcas e atividades de marketing.Consumers usually refer to their favorite brands as brands they love, and love, as some would say, is all you need. Consequently, managers and researchers rushed to develop the idea of brand love. Today, this concept is currently used as a holistic term that is linked to several intense emotions combined with an intense purchase or usage experience that results in positive behaviors. Nevertheless, this valuable notion remains yet to become an established consensual marketing construct. In addition, the state-of-the-art knowledge does not allow neither managers nor researchers to understand if the foundations or dimensional aspects of brand love vary from one brand to another or from one country to another. That is the goal of the present research. It aims to characterize brand love dimensions, its impact on market outcome variables and compare the results of brands from different categories and consumers from entirely different countries. Using structural equation modeling on survey data, we propose a brand love model consisting of a higher order emotional dimension passion and first order dimensions such as commitment, self-personality brand integration and long-term perspective. The model includes market outcomes such as brand loyalty, positive word of mouth and brand commitment as consequences of brand love. Our results allow us to propose model and market outcomes differences identified across location and brand category and we discuss how coherent they are with the organizational and cultural differences put forward by Hofstede. We conclude this research by presenting theoretical and managerial implications on brand building and marketing activities

Discrete Choices under Social Influence: Generic Properties

We consider a model of socially interacting individuals that make a binary choice in a context of positive additive endogenous externalities. It encompasses as particular cases several models from the sociology and economics literature. We extend previous results to the case of a general distribution of idiosyncratic preferences, called here Idiosyncratic Willingnesses to Pay (IWP).Positive additive externalities yield a family of inverse demand curves that include the classical downward sloping ones but also new ones with non constant convexity. When $j$, the ratio of the social influene strength to the standard deviation of the IWP distribution, is small enough, the inverse demand is a classical monotonic (decreasing) function of the adoption rate. Even if the IWP distribution is mono-modal, there is a critical value of $j$ above which the inverse demand is non monotonic, decreasing for small and high adoption rates, but increasing within some intermediate range. Depending on the price there are thus either one or two equilibria.Beyond this first result, we exhibit the {\em generic} properties of the boundaries limiting the regions where the system presents different types of equilibria (unique or multiple). These properties are shown to depend {\em only} on qualitative features of the IWP distribution: modality (number of maxima), smoothness and type of support (compact or infinite).The main results are summarized as {\em phase diagrams} in the space of the model parameters, on which the regions of multiple equilibria are precisely delimited.discrete choice; social influence; externalities; heterogeneous agents; socioeconomic behavior