Choice Heuristics in Processed Food Purchases: The Case of Hotdog Purchase in the U.S.

Abstract

The classical discrete choice model assumes that decision-makers consider all attributes in choice situations. However, decision-making often relies on some heuristic process instead of full attribute assessment. Unlike previous literature based on stated choice data, this study attempted to accommodate attribute inattention into a discrete choice model using market data. Our test reports getting better models fit in where they include both choice heuristic and full attribute preservation rules than in the conventional assumption. Accordingly, the heterogeneous decision rules need to be considered in choice modeling as an alternative to the traditional assumption. It is expected that this approach will help to derive food marketing implications for the consumer segments corresponding to each decision rule, reflecting multiple decision-making rules.