Masao Nakanishi

Standardizing Variables in Multiplicative Choice Models

To use multiplicative competitive interaction (MCI) models as part of a theory of the evaluative process in choice, we need a method to transform interval scale consumer judgments into positive, ratio scales. We develop a coefficient—zeta-squared—that possesses the needed scale requirements and other theoretically desirable properties, and report four research studies to demonstrate the diversity of applications of multiplicative choice models using zeta-squared. We also discuss the relations of MCI models to Luce choice models to illustrate the potential of zeta-squared for representing the effects of similarity on choice, and consider some of the benefits of standardizing variables in MCI models or multinomial logit models.

Voting for a Political Candidate Under Conditions of Minimal Information

Until very recently, the major focus of research in the field of consumer behavior has been on the selection of products, brands and decision choices primarily in the sphere of marketing. The purpose of this paper was to modify a model developed to measure market share to account for the variables that enter into the selection of a political candidate and predict voting behavior.

TWO LOGIT MODELS FOR EXTERNAL ANALYSIS OF PREFERENCES

A logit vector model and a logit ideal point model are presented for external analysis of paired comparison preference judgments aggregated over a homogeneous group. The logit vector model is hierarchically nested within the logit ideal point model so that statistical tests are available to distinguish between these two models. Generalized least squares estimation procedures are developed to account for heteroscedastic sampling error variances and specification error variances. Two numerical illustrations deal with judgments concerning employee compensation plans and preferences for salt and sugar in the brine of canned green beans.

Advertising and Promotion Effects on Consumer Response to New Products

A stochastic model of consumer response to new products is developed which incorporates the effects of overtime variations in advertising and promotion. The model’s primary usefulness lies in its ability to generate conditional forecasts of product sales to evaluate alternative marketing programs for new product introduction.

Market-Share Analysis: A Core Technology for Learning About Markets and Competition

The current state of market-share analysis is summarized according to the five-stage model described in Cooper and Nakanishi (1988). Consideration of what is needed to help managers learn about markets and competition leads to a discussion of CHAINs (Combined Human- and Artificial-Intelligence Networks)—open systems in which growth of the knowledge base is the primary concern.