• Journal of Distribution Science
• /
• v.14 no.11
• /
• pp.61-73
• /
• 2016

Purpose - Marketing scholars have developed various types of mathematical models for describing marketing phenomenon, because there is no single model comprehensive enough to incorporate all the relevant marketing phenomena. This study tries to summarize the behavioral foundations and the mathematical derivations of the most widely used marketing models and discusses their strategic implications. This study selected four representative marketing models: multinomial logit(MNL) model, elimination-by-aspects(EBA) model, Hauser and Shugan model and Bass diffusion model. Especially, this study focuses on Hauser and Shugan(1983)'s Defender model and discusses the model's behavioral foundation and its implications. Research design, data, and methodology - Of the four selected model, the multinomial logit model is selected as the basic normative model and the other three models are described as descriptive models in contrast. Starting the discussion from the multinomial logit model, this study explains what important strategic variables are incorporated in each of the four models. The IIA(independence of irrelevant alternatives) axiom and Luce choice model is also discussed in relation to the multinomial logit model. The concept of 'efficient frontier' is discussed in relation to Hauser and Shugan's model. Graphs and tables are used to represent the key implications. No empirical study is included. Results - The analyses of the mathematical marketing models are shown to be very useful in understanding the essence of positioning strategy. The multinomial logit model implies the importance of increasing utility or consumer preference level. The EBA model implies the importance of lowering the inter-brand similarity and dominating the competitors. Hauser and Shugan model implies the importance of considering customer heterogeneity distribution in selecting the target market. Conclusions - It is shown that the concepts of 'efficient frontier' is useful in understanding the effectiveness of positioning strategy. Market positioning can be understood as occupying some place on the efficient frontier. The important strategic implications can be summarized as follows: Always try to increase customer preference by providing what they value, and differentiate from competing alternatives as much as possible. The best positioning strategy is to dominate all the competitors and the worst is to be dominated by the competitors.

• Journal of Korean Society for Quality Management
• /
• v.29 no.1
• /
• pp.11-23
• /
• 2001

This paper is concerned with suggesting a Bayesian method for variable selection in multinomial logit model. It is based upon an optimal rule suggested by use of Bayes rule which minimizes a risk induced by selecting the multinomial logit model. The rule is to find a subset of variables that maximizes the marginal likelihood of the model. We also propose a Laplace-Metropolis algorithm intended to suggest a simple method forestimating the marginal likelihood of the model. Based upon two examples, artificial data and empirical data examples, the Bayesian method is illustrated and its efficiency is examined.

• Industrial Engineering and Management Systems
• /
• v.11 no.2
• /
• pp.148-154
• /
• 2012

Micro Electric Vehicles are considered as a solution for reducing $CO_2$ emissions, however, it is difficult to evaluate its impact in a local community when it has been introduced. In this study, we evaluated how to spread the Micro EV within the community, using the utility derived from a multinomial logit model, and analyze the effect on $CO_2$ emissions. The householder's utility model is based on an investigation about Kiryu citizen's activities of shopping, transportation methods, etc. Using the geographic information system, we get the distances of each householder and the stores, and estimate a multinomial logit model about the combination choices of shopping stores and transportation method.

• Journal of the Korean Institute of Landscape Architecture
• /
• v.22 no.3
• /
• pp.1-12
• /
• 1994

This study was carried out to identify destination choice behavior for one-day use recreation areas. Previous positioning study was utilized to select 4 study areas, and the secondary data were used for logit analyses. The Hausamn-McFadden test for IIA was conducted to examine whether conditional logit models are valid methodology for this study. The results revealed that IIA assumption among the study areas was violated; therefore, generalized binomial and generalized multinomial logit models were used in this study. In the binomial logit analysis, 2 to 5 independent variables were included in the models: their $\rho$2 values were from 0.1to 0.323, and accuracy of predictions were from 65.38 to 79.86 percent. In the multinomial logit analysis, 4 independent variables were included in the model: its $\rho$2 value was 0.207, and accuracy of prediction was 45.82 percent. The results showed that the conditional logit should be used with caution because of the IIA assumption. Several suggestions were described, mainly due to utilization of the secondary data for this study.

• Knowledge Management Research
• /
• v.14 no.1
• /
• pp.73-94
• /
• 2013

Customer's purchase state consists of purchase inertia and variety-seeking. As the growing brand familiarity triggers the increase of brand attractiveness, customers purchase state will be of inertia. However the excessively growing brand familiarity ignites the decrease of brand attractiveness. Followingly the purchase state will be tend to plunge into the variety-seeking state. The main topic of this study is to validate the asymmetric formation of customer's purchase states between inertia and variety-seeking. In order to follow up the main topic, this article introduces a model to freely describe the velocity of value changes depending upon the purchase states. This model will help overcome the limitation of the past studies having been based on the symmetric value changes. Based on this approach marketer will be able to decide the timing of sales promotions. This research utilized local telecommunication carrier's database of smartphone application purchase/download records. This database was collected from two years (2009 and 2010) span, the time when the smartphones started commodifying in Korea whilst most of the past studies had used purchase data of maturity stage products. From this approach utilizing the introduction stage data in the product life cycle, the probability of brand choice depending upon the purchase state on the early-stage can be probed. Moreover, this study tries to expand the research methodology from the other areas of research by knowledge sharing. Here this study introduces the methodology of section-aggregated multinomial logit to simultaneously estimate the parameters that were included in the plural multinomial logit functions while the plural functions were inter-connected. This adoption of section-aggregated multinomial logit model procedures from the computerized statistics areas is expected to nourish the marketing research for more precise analysis and estimation of effects of marketing activities.

• Journal of Korean Society of Transportation
• /
• v.13 no.4
• /
• pp.47-59
• /
• 1995

The main purpose of this study is identifying the factors which affect the mode choice behavior of work trips. Disaggregate behavioral approach is used for the analysis . The data were collected using the questionnaire survey method in Taegu. Two models were developed in this study which are multinomial logit model(MODEL-1) for auto, taxi and bus and multinomial logit model (MODEL-2) for auto, taxi, bus and subway. The stated preference (SP) data were used for the analysis of the subway mode choice behavior. MODEL-1 provide reasonable results for the future application. A multinomial model (MODEL-2) developed using the stated preference(SP) data was tested for the use of future transportation mode. It is four that the those models provides reasonable results in terms of behavioral and statistical consideration.

• Journal of the Korean Society of Safety
• /
• v.32 no.3
• /
• pp.141-150
• /
• 2017

A rapid increase in traffic accidents involving senior vehicle occupants has been an issue in Korea because of the aging of the population occurring at one of the fastest rates in the world; unfortunately, few studies beyond several looking at the effect of senior occupants on the level of accident injury severity can be found in the literature. A Multinomial logit model was estimated with Newton-Raphson algorithm to perform bias-reducing penalized likelihood optimization. Model covariates integral to developing the model were included, but the main focus was on the interaction of seating position and injury to senior vehicle occupants. It was found that the likelihood of an accident resulting in a fatality increased: 2.2 times for the driver seat, 2.7 times for the front passenger seat, and even 6.7 times for the rear seat. A mandatory seatbelt law to be extended to the rear seat needs to pass the assembly as soon as possible, and government, industry, and safety groups should be encouraged to join forces to strongly carry out targeted campaigns for the wearing of seatbelts in all vehicle seats to enhance the safety of senior occupants as well as other occupants who are vulnerable to road traffic accidents.

• Journal of Korean Society of Rural Planning
• /
• v.24 no.4
• /
• pp.27-35
• /
• 2018

This study analyzed the factors influencing the choice of new farming type in order to prepare the countermeasures against structural changes of farm labor force. The analytical model was the multinomial logit model(MNL). The test for Independence and Irrelevance Alternatives(IIA) assumption in MNL shows that the IIA assumption in our data is rejected. Alternatively, we chose the multinomial probit model(MNP) that does not assume IIA. Data were obtained from 2010 census of Agriculture, Forestry and Fisheries of Statistics Korea. New farming types are succession(13.9%), return-to-farming(45.0%), part-time-farming(32.5%) and etc(8.6%). Analysis results showed that the characteristics of farms, commodity, management, and region influenced the choice of new farming type. This study is expected to help policy makers to produce support policies by new farming types in order to increase the number of new farmers and to make them easier to settle down in agriculture.

• The Korean Journal of Applied Statistics
• /
• v.21 no.4
• /
• pp.589-602
• /
• 2008

This article studies on disability pensioners' characteristic with multinomial logit and logistic regression model. Seven factors are examined on whether each factor is reflected in degree of disability in the disability pension. By incorporating multinomial logit and logistic regression model, effectiveness and characteristic of the seven factors are investigated on the degree of disability. Result shows all the seven factors are significant on the degree of disability, while among the seven, five factors, age, sex, type of coverage, type of category, insured duration show a trend in degree of disability and the other two, cause of disability and class of standard monthly income are not effective on trend in degree of disability. Results from analyses might be useful for disability pension management.

• Journal of Labour Economics
• /
• v.41 no.3
• /
• pp.95-128
• /
• 2018

This study tries to measure the change in the state dependence of the three labor supply choices (part-time, full-time, and the state of unemployed) in Korean married women's labor market by estimating the dynamic multinomial logit model based on MSL (maximum simulated likelihood) method. A component representing individual's unobserved characteristics has been introduced, because it is crucial to control for unobserved heterogeneity in assessing the state dependence. Estimation results show that the state dependences of the three alternatives have strengthened recently. Therefore, part-time job has become more likely to be functioning as an extra option to participate in labor market rather than a bridge(stepping stone) or shelter between unemployment and full-time job.