Using choice models to make decisions

Choice Modeling for Marketing in R

Elea McDonnell Feit

Assistant Professor of Marketing, Drexel University

A choice model can be used to predict the market shares for a new set of products.

For example, the predicted shares for three sports cars cars might look like this:

      share seat  trans convert price
1 0.1614799    2 manual      no    35
2 0.5929444    2   auto      no    35
3 0.2455756    4   auto      no    40

If we change our design:

      share seat trans convert price
1 0.5207902    2  auto      no    30
2 0.3388646    2  auto      no    35
3 0.1403452    4  auto      no    40
Choice Modeling for Marketing in R

predict_mnl() function

predict_mnl(model, products)
Choice Modeling for Marketing in R

Let's predict some shares!

Choice Modeling for Marketing in R

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