Using choice models to make decisions

Keuzemodellering voor 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 0.1767525    2 manual      no    35
2 0.5974280    2   auto      no    35
3 0.2258195    4   auto      no    40

If we change our design:

       share seat trans convert price
1 0.65314409    2  auto      no    30
2 0.25171218    2  auto      no    35
3 0.09514373    4  auto      no    40

predict_mnl() function

predict_mnl(model, products)

Let's predict some shares!

Keuzemodellering voor marketing in R