Locally D-Optimal Design for a Logit Model in Discrete Choice Experiment

Author: Jafari Habib  

Publisher: Taylor & Francis Ltd

ISSN: 0361-0926

Source: Communications in Statistics: Theory and Methods, Vol.42, Iss.5, 2013-03, pp. : 867-882

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Abstract

Conjoint analysis is concerned with understanding how people make choice between products or services (alternatives) or a combination of product and service (choice set), so that businesses can design new products or services that better meet customers needs. In this situation, logit model (Multinomial Logit Model) has been used to calculate the probability related to choosing an alternative in a choice set with the highest utility. Then I considered several choice sets instead of one. In this article, I have used the locally D-optimal design for the combination of the level of attributes (two attributes each with two levels) to create alternatives. The optimal combination of alternatives in choice sets which help us to have a suitable choice.