Shopping destination choice in Tehran: An integrated choice and latent variable approach

Abstract

Integrated choice and latent variable (ICLV) models are increasingly considered in many fields as a means to gain a deeper understanding into the decision process of individuals as well as to potentially improve predictive ability. Literature has shown that the application of ICLV in context of shopping destination choice has not been conducted yet. This study uses data collected from the city of Tehran, Iran on shopping destination choice of 812 individuals. Then these attitudinal questions are used for the development of latent variables regarding the attitude and lifestyle of the participants. By including one latent variable (LV) reflecting the attitudes of clothing and lifestyle’s of grocery travelers the structural model reveals a sample distribution of this LV conditional on fundamental socio-economic characteristics. The results of our latent variable model clearly confirm that personal attitude toward clothing shopping center and lifestyle indeed impact destination choice. The results show that our experiment and the expanded hybrid choice model (HCM) allow appropriately identifying and investigating the effects of mixtures of latent attitudes on the intention shopping destination choice.