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Choice Modeling for Marketing in R

AdvancedSkill Level
4.8+
36 reviews
Updated 08/2024
Learn to analyze and model customer choice data in R.
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RProbability & Statistics4 hr17 videos54 Exercises4,100 XP6,887Statement of Accomplishment

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Course Description

People make choices everyday. They choose products like orange juice or a car, decide who to vote for, and choose how to get to work. Marketers, retailers, product designers, political scientists, transportation planners, sociologists, and many others want to understand what drives these choices. Choice models predict what people will choose as a function of the features of the options available and can be used to make important product design decisions. This course will teach you how to organize choice data, estimate choice models in R and present findings. This course covers both analyses of observed real-world choices and the survey-based approach called conjoint analysis.

Prerequisites

Intermediate Regression in R
1

Quickstart Guide

Our goal for this chapter is to get you through the entire choice modeling process as quickly as possible, so that you get a broad understanding of what we can do with choice models and how the choice modeling process works. The main idea here is that we can use a choice model to understand how customers' product choices depend on the features of those products. Do sportscar buyers prefer manual transmissions to automatic? By how much? In order to give you an overview, we will skip over many of the details. In later chapters, we will go back and cover important issues in preparing data, specifying and interpreting models and reporting your findings, so that you are fully prepared to use these methods with your own choice data.
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2

Managing and Summarizing Choice Data

There are many different places to get choice data and different ways it can be formatted. In this chapter, we will take data that is provided in several alternative formats and learn how to get it into shape for choice modeling. We will also discuss how you can build a survey to collect your own choice data.
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3

Building Choice Models

In this chapter, we take deeper dive into estimating choice models. To give you a foundation for thinking about choice models, we will focus on how the multinomial logit model converts the product features into a prediction for what the decision maker will choose. This will give you a framework for making decisions about which features to include in your model.
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4

Hierarchical Choice Models

Different people have different tastes and preferences. This seems intuitively obvious, but there is also extensive research in marketing showing that this is true. This chapter covers choice models where we assume that different decision makers have different preferences that influence their choices. When our models recognize that different consumers have different preferences, they tend to make larger share predictions for niche products that appeal to a subset of consumers. Hierarchical models are used in most commercial choice modeling applications, so it is important to understand how they work.
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Choice Modeling for Marketing in R
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*4.8
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  • Tugba
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  • іра
    3 days ago

  • Аnhelina
    3 days ago

  • Lilia
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  • Jaehun
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  • Mohammed
    5 weeks ago

Tugba

іра

Аnhelina

FAQs

Is this course suitable for beginners?

No. This course is suitable for intermediate learners, with experience in Regressions in R. We recommend you take "Intermediate Regression in R" before taking this course.

Will I receive a certificate at the end of the course?

Yes, DataCamp provides completion certificates for all of our courses.

Who will benefit from this course?

This course is beneficial for marketers, retailers, product designers, political scientists, transportation planners, sociologists and anyone with an interest in understanding what drives customer choices.

What kind of data do I need for this course?

You can use several alternative formats of data for this course and learn how to get it into shape for choice modeling. Additionally, this course will assist with how to construct a survey to collect choice data.

What does this course include?

This course includes an overview of what can be done with choice models, managing and summarizing choice data, building choice models, and hierarchical choice models.

What is a multinomial logit model?

A multinomial logit model is a commonly-used choice model that convert the product features into a prediction for what a decision maker will choose.

How does this course help me make decisions about which features to include in my model?

This course provides a framework for making decisions about which features to include in your model by examining how the multinomial logit model produces a prediction for what a decision maker will choose based on the features of the product.

How are hierarchical models used in choice modeling?

Hierarchical models are used to recognize that different consumers have different preferences or tastes and influencer their choices. They also make larger share predictions for niche products that appeal to a subset of consumers.

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