UCL School of Management is delighted to welcome Marc Dotson, Brigham Young University, to host a research seminar discussing, ”Product Relevance and Non-Compensatory Choice”.
Abstract: Non-compensatory choice models provide a more realistic description of consumer choice. Such models specify a two-stage decision process that begins with consumers screening products from consideration and ends with a traditional compensatory choice using a reduced set of products. Consumer screening behavior is assumed to be a function of attribute levels, which is identified based on information provided by the chosen products alone. Furthermore, the screening mechanism is assumed to be the same for each attribute. In this paper we propose a non-compensatory choice model that combines choice information with auxiliary data to account for different kinds of screening rules. Specifically, we model brand and the remaining attributes separately to account for the sub-compensatory process of assessing product relevance.