Re-incorporating usage situation in choice models: a base for future developments

Abstract

There is strong theoretical and empirical evidence supporting the idea that consumers seek functional features in products. These features are determined by the situations in which the consumer foresees the use of the products. Despite their influence, these situations have received little attention among marketing academics. Thus, we propose a choice model that takes into account these factors. In this model, two stages of consumer choice are affected by usage situations. First, the alternatives included within the consideration set are determined by foreseen usage contexts. Second, the evaluation of alternatives is performed using an ideal-value scheme, which depends directly on the intended consumption situations. This model is validated with survey data and scanner panel data. The results suggest the need to provide practitioners with new guidance on how to manage product functionality in strategic and tactic decisions, especially regarding product design and communication areas.