Segmentation of store choice models using stated preferences

Abstract

The understanding and modelling of consumer shopping behaviour can increasingly only be fully realised by reference to market segments. Disaggregate choice modelling methods are able to take account of such behavioural heterogeneity, but are hampered by the poor quality of observed choice data on which they are calibrated. This paper shows how a segmented modelling strategy may be developed using stated preference data, and illustrates the methodology using the example of grocery shopping in Cardiff, South Glamorgan.