Use of Binary Attributes in the Multiplicative Competitive Interactive Choice Model
Bibliographic Data
| ID | 3043046 |
|---|---|
| Authors | Vijay Mahajan (0000-0001-7374-8632), Arun K Jain (0000-0001-8325-2892), Brian T Ratchford (0000-0003-2202-3679) |
| Year | 1978 |
| Volume | 5 |
| Issue | 3 |
| Pages | 210 |
| Publication date | 1978-12-01 |
| Peer Reviewed | Yes |
| Open Access | No |
| Type | ARTICLE |
| Venue | Journal of Consumer Research (JOURNAL) |
| Journal identifiers | ISSN: 0093-5301 • E-ISSN: 1537-5277 |
| Publisher | Oxford University Press (OUP) (PUBLISHER) |
| DOI | 10.1086/208733 |
| OpenAlex | W1976632854 |
| Language | EN |
| References cited | 3 |
In 1974, Nakanishi, Cooper, and Kassarjian proposed the multiplicative competitive interactive (MCI) choice model for predicting outcome of election results. The authors pointed out the superiority of the multiplicative model over the additive model, which was popular in political science (Muller 1970). The model, which is an extension of the gravitational market share model of consumers' spatial behavior originally suggested by Huff (1963), is extremely popular in marketing. It has been used for site selection (Huff 1963; LaLonde 1962), estimating sales potential (Hlavac and Little 1966; Jain and Mahajan 1978; Stanley and Sewall 1976), identifying trading area (Haines, Simon, and Alexis 1972), and market share estimation (Kotler 1971; Mahajan, Jain, and Bergier 1977). The sophistication of the model is obvious. The MCI model has been shown to be a special case of the multinomial extension of the linear logit model developed by Theil (1969) and applied to market share relations by Buletz and Naert (1975). McGuire, Weiss, and Houston (1977) provide a comprehensive discussion of these similarities. The initial application of the model was limited because of the problem in parameter estimation. However, due to the efforts of Kotler (1971), Teekens (1972), and Nakanishi and Cooper (1974), it is possible to calibrate the model using least squares procedures. Some of the conceptual and operational problems associated with the model are discussed in Huff and Batsell (1975) and Mahajan and Jain (1977). The MCI model postulates the consumer choice from among m alternatives as follows
Econometrics · Economics · Mathematical economics · Multinomial logistic regression · Multiplicative function · Sociology · Sophistication · Statistics · Consumer Market Behavior and Pricing · Economic and Environmental Valuation · Economics of Agriculture and Food Markets · Mathematics
| Citation velocity | historical |
|---|---|
| Highly cited | No |