• The Journal of Asian Finance, Economics and Business
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• v.7 no.2
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• pp.221-228
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• 2020

This study suggests an alternative to the conventional collaborative filtering method for predicting consumer choice, using case-based reasoning. The algorithm of case-based reasoning determines the similarity between the alternative sets that each subject chooses. Case-based reasoning uses the inverse of the normalized Euclidian distance as a similarity measurement. This normalized distance is calculated by the ratio of difference between each attribute level relative to the maximum range between the lowest and highest level. The alternative case-based reasoning based on similarity predicts a target subject's choice by applying the utility values of the subjects most similar to the target subject to calculate the utility of the profiles that the target subject chooses. This approach assumes that subjects who deliberate in a similar alternative set may have similar preferences for each attribute level in decision making. The result shows the similarity between comparable alternatives the consumers consider buying is a significant factor to predict the consumer choice. Also the interaction effect has a positive influence on the predictive accuracy. This implies the consumers who looked into the same alternatives can probably pick up the same product at the end. The suggested alternative requires fewer predictors than conjoint analysis for predicting customer choices.

• Journal of Korea Water Resources Association
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• v.41 no.1
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• pp.101-113
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• 2008

Cost-benefit analysis was conducted to propose the best alternatives for integrated watershed management. Benefits of all alternatives were estimated combining results of choice experiment method with alternative evaluation index (AEI). Choice experiment which is a kind of stated preference techniques was applied to six regions since the Anyangcheon watershed was divided into six according to spatial characteristics and conditions (potential hazard and location). Alternative of NB > 0 must be considerable since they are economically and technically feasible.

• Journal of the Korean Institute of Landscape Architecture
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• v.28 no.1
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• pp.19-28
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• 2000

The purposes of this study are two folds: a) to introduce conjoint choice model to research the choice behavior of theme park users, and b) to suggest the strategies to strengthen the competitiveness of theme parks. The major four theme parks in Seoul metropolitan areas were selected as study areas. A leading polling agency was employed to select 432 respondents by probability sampling and to conduct face-to-face interview. Both alternative generating and choice set generating fractional factorial design were conducted simultaneously to meet the necessary and sufficient conditions for calibration of the conjoint choice model. Dummy coding was used to represent the attribute levels, and the alternative-specific model was calibrated. The goodness-of-fit of the model was quite satisfactory($\rho$$^2$=0.47950), and most parameters values had to expected sign and magnitude. Car was preferred transport mode to shuttle bus for visiting theme parks ; however the most ideal attribute levels only were estimated significantly. Most attribute levels of shuttle bus were estimated significantly except the Dream Land, which is the least attractive park among study areas. Simulation results showed that the shuttle bus was a mode worth providing to switch the current car dominant visiting pattern of theme parks, which will be one the effective strategies to attract more patrons, especially for potential users adjacent to parks. Several ideals were suggested for future researches, in terms of utilization of more general utility function and new base alternative, and inclusion of more salient attributes such as constraints in the model.

• Journal of the Korean housing association
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• v.11 no.4
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• pp.9-22
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• 2000

The residential mobility and the housing choice procedures play a significant role on households welfare. This procedure consists of $\circled1$ Moving motives step, $\circled2$ Housing search step, $\circled3$ Assessment of housing alternative step, $\circled4$ Choice and evaluating after choice step, $\circled5$ Intention to move step. There are linkages with each step. The higher the level of moving motives, the higher the level of housing search efforts. The higher the level of housing search efforts, the higher the level of housing alternative evaluating. The higher the level of housing alternative evaluating, the higher the level of housing satisfaction after they choose a house. The higher the level of housing satisfaction after they choose a house, the lower the level of intention to move. So the whole procedure of housing choice among consumers has a main streaming throughout the steps.

• Asia Marketing Journal
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• v.18 no.3
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• pp.47-63
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• 2016

Rational choice theory holds that the alternative with largest expected utility in the choice set should always be chosen. However, it is often observed that an alternative with the largest expected utility is not always chosen while the choice task itself being avoided. Such a choice phenomenon cannot be explained by the traditional expected utility maximization principle. The current study posits shows that such a phenomenon can be attributed to the gap between the expected perceived gain (or loss) and the expected perceived value. This study mathematically analyses the relationship between the expectation of an alternative's gains or losses over the reference point and its expected value, when the perceived gains or losses follow continuous probability distributions. The proposed expected value (EV) function can explain the effects of loss aversion and uncertainty on the evaluation of an alternative based on the prospect theory value function. The proposed function reveals why the expected gain of an alternative should exceed some positive threshold in order for the alternative to be chosen. The model also explains why none of the two equally or similarly attractive options is chosen when they are presented together, but either of them is chosen when presented alone. The EV function and EG-EV curve can extract and visualize the core tenets of the prospect theory more clearly than the value function itself.

• Knowledge Management Research
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• v.10 no.3
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• pp.99-113
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• 2009

The goal of this article is to ascertain the factors that govern consumers' choosing to outbound travel product. The authors assess the consumers' travel product choosing processes with information search(internal knowledge, external information knowledge). alternative evaluation(perceived image, emotional experience, price acceptability, appeal, trust), and alternative choice(purchasing intention). Using data on Thailand travel product, the authors find considerable results and conclude by discussing prescriptive recommendations for the travel industry.

• Proceedings of the Technology Innovation Conference
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• 2006.02a
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• pp.264-297
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• 2006

In this paper, we attempt to analyze consumer preference for the alternative-fuel vehicles based on data from a stated preference using the conjoint analysis. Five possible fuel types (gasoline, diesel, CNG, LPG, Hybrid (electricity+gasoline)) are covered in conjoint cards. To estimate and analyze consumer preference, discrete choice model is used. Specifically, Bayesian mixed logit model is used. Based on estimating results, we discuss the business strategy and policy for the alternative fuel vehicle.

• Korean Management Science Review
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• v.28 no.1
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• pp.159-167
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• 2011

The theory of random utility maximization (RUM) defines the probability of an alternative being chosen as the probability of its utility being perceived as higher than those of all the other competing alternatives in the choice set (Marschak 1960). According to this theory, consumers perceive the utility of an alternative not as a constant but as a probability distribution. Over the last two decades, there have been an increasing number of studies on the effect of utility variance on choice probability. The common result of the previous studies is that as the utility variance increases, the effect of the mean value of the utility (the deterministic component of the utility) on choice probability is reduced. This study provides a theoretical investigation on the effect of utility variance on choice probability without any assumptions on the specific forms of probability distributions. This study suggests that without assumptions of the probability distribution functions, firms cannot apply the marketing strategy of maximizing choice probability (or market share), but can only adopt the strategy of maximizing the minimum or maximum value of the expected choice probability. This study applies the Chebyshef inequality and shows how the changes in utility variances affect the maximum of minimum of choice probabilities and provides managerial implications.

• Korean Management Science Review
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• v.25 no.1
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• pp.139-147
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• 2008

Conjoint Analysis is marketers' favorite methodology for finding out how buyers make trade-offs among competing products and suppliers. Thousands of applications of conjoint analysis have been carried out over the past three decades. The conjoint analysis has been so popular as a management decision tool due to the availability of a choice simulator. A conjoint simulator enables managers to perform 'what if' question accompanying the output of a conjoint study. Traditionally the First Choice Model (FCM) has been widely used as a choice simulator. The FCM is simple to do, easy to understand. In the FCM, the probability of an alternative is zero until its value is greater than others in the set. Once its value exceeds that threshold, however, it receives 100%. The LOGIT simulation model, which is also called as "Share of Preference", has been used commonly as an alternative of the FCM. In the model part worth utilities aren't required to be positive. Besides, it doesn't require part worth utilities computed under LOGIT model. The simulator can be used based on regression, monotone regression, linear programming, and so on. However, it is not free from the Independent from Irrelevant Alternatives (IIA) problem. This paper proposes the EBA (Elimination-By-Aspects) model as a useful conjoint-like method. One advantage of the EBA model is that it models choice in terms of the actual psychological processes that might be taking place. According to EBA, when choosing from choice objects, a person chooses one of the aspects that are effective for the objects and eliminates all objects which do not have this aspect. This process continues until only one alternative remains.

• Journal of the Korean Institute of Landscape Architecture
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• v.28 no.2
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• pp.18-27
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• 2000

The importance of constraints has been one of major issues in recreation for prediction of choice behavior; however, traditional conjoint choice model did not consider the effects of these variables or fail to integrate them into choice model adequately. The purposes of this research are (a) to estimate the effects of constraints in theme park choice behavior by the constraints-induced conjoint choice model, and (b) to test additional explanatory power of the additional constraints in this suggested model against the more parsimonious traditional model. A leading polling agency was employed to select respondents. Both alternative generating and choice set generating fractional factorial design were conducted to meet the necessary and sufficient conditions for calibration of the constraints-induced conjoint choice model. Th alternative-specific model was calibrated. The log-likelihood ratio test revealed that suggested model was accepted in the favor of the traditional model, and the goodness-of-fit($\rho$$^2$) of suggested and traditional model was 0.48427 and 0.47950, respectively. There was no difference between traditional and suggested model in estimates of attribute levels of car and shuttle bus because alternatives were created to estimate the effects of constraints independently from mode related variables. Most parameters values of constraints had the expected sign and magnitude: the results reflected the characteristics of the theme parks, such as abundance of natural attractions and poor accessibility in Everland, location of major fun rides indoor in Lotte World, city park like characteristics of Dream Land, and traffic jams in Seoul. Instead of the multinomial logit model, the nested logit model is recommended for future researches because this model more reasonably reflects the real decision-making process in park choice. Development of new methodology too integrate this hierarchical decision-making into choice model is anticipated.