Journal of Global Scholars of Marketing Science (마케팅과학연구)
- Volume 19 Issue 2
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- Pages.17-26
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- 2009
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- 2163-9159(pISSN)
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- 2163-9167(eISSN)
Correlation among Ownership of Home Appliances Using Multivariate Probit Model
다변량 프로빗 모형을 이용한 가전제품 구매의 상관관계 분석
- Kim, Chang-Seob (Department of Electrical Engineering, Kyungwon University) ;
- Shin, Jung-Woo (Economics, and Policy Program, Seoul National University) ;
- Lee, Mi-Suk (Economics, and Policy Program, Seoul National University) ;
- Lee, Jong-Su (Economics, and Policy Program, Seoul National University)
- Published : 2009.06.30
Abstract
As the lifestyle of consumers changes and the need for various products increases, new products are being developed in the market. Each household owns various home appliances which are purchased through the choice of a decision maker. These appliances include not only large-sized products such as TV, refrigerator, and washing machine, but also small-sized products such as microwave oven and air cleaner. There exists latent correlation among possession of home appliances, even though they are purchased independently. The purpose of this research is to analyze the effect of demographic factors on the purchase and possession of each home appliances, and to derive some relationships among various appliances. To achieve this purpose, the present status on the possession of each home appliances are investigated through consumer survey data on the electric and energy product. And a multivariate probit(MVP) model is applied for the empirical analysis. From the estimation results, some appliances show a substitutive or complementary pattern as expected, while others which look apparently unrelated have correlation by co-incidence. This research has several advantages compared to previous literatures on home appliances. First, this research focuses on the various products which are purchased by each household, while previous researches such as Matsukawa and Ito(1998) and Yoon(2007) focus just on a particular product. Second, the methodology of this research can consider a choice process of each product and correlation among products simultaneously. Lastly, this research can analyze not only a substitutive or complementary relationship in the same category, but also the correlation among products in the different categories. As the data on the possession of home appliances in each household has a characteristic of multiple choice, not a single choice, a MVP model are used for the empirical analysis. A MVP model is derived from a random utility model, and has an advantage compared to a multinomial logit model in that correlation among error terms can be derive(Manchanda et al., 1999; Edwards and Allenby, 2003). It is assumed that the error term has a normal distribution with zero mean and variance-covariance matrix