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Predicting customer choice in services using discrete choice analysis

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5 Author(s)
R. Verma ; Cornell University, School of Hotel Administration, 338 Statler Hall, Ithaca, NY 14850, USA ; G. R. Plaschka ; B. Hanlon ; A. Livingston
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This paper presents an overview of the science and art of discrete choice modeling for service sector applications. With the ongoing momentum of service science, management, and engineering, the discrete choice modeling approach provides a sophisticated tool kit for assessing the needs and preferences of service customers. We provide directions for designing and executing discrete choice studies for services and discuss several examples for a number of industries including health care, financial services, retail, hospitality, and online services. We conclude with a discussion of the many managerial implications of the discrete choice approach.

Note: The Institute of Electrical and Electronics Engineers, Incorporated is distributing this Article with permission of the International Business Machines Corporation (IBM) who is the exclusive owner. The recipient of this Article may not assign, sublicense, lease, rent or otherwise transfer, reproduce, prepare derivative works, publicly display or perform, or distribute the Article.  

Published in:

IBM Systems Journal  (Volume:47 ,  Issue: 1 )