2010
DOI: 10.1080/18756891.2010.9727732
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Modeling Toothpaste Brand Choice: An Empirical Comparison of Artificial Neural Networks and Multinomial Probit Model

Abstract: The purpose of this study is to compare the performances of Artificial Neural Networks (ANN) and Multinomial Probit (MNP) approaches in modeling the choice decision within fast moving consumer goods sector. To do this, based on 2597 toothpaste purchases of a panel sample of 404 households, choice models are built and their performances are compared on the 861 purchases of a test sample of 135 households. Results show that ANN's predictions are better while MNP is useful in providing marketing insight.

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Cited by 5 publications
(5 citation statements)
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“…The process of computing appropriate weights is called a learning law or learning algorithm. The learning process of ANN can be thought of as a reward and punishment mechanism [23], whereby when the system reacts appropriately to an input, the related weights are strengthened. In this case, it is possible to generate outputs, which are similar to those corresponding to the previously encountered inputs.…”
Section: Artificial Neural Network Artificial Neural Networkmentioning
confidence: 99%
“…The process of computing appropriate weights is called a learning law or learning algorithm. The learning process of ANN can be thought of as a reward and punishment mechanism [23], whereby when the system reacts appropriately to an input, the related weights are strengthened. In this case, it is possible to generate outputs, which are similar to those corresponding to the previously encountered inputs.…”
Section: Artificial Neural Network Artificial Neural Networkmentioning
confidence: 99%
“…2 For toothpaste, previous studies include Kaya et al (2010), Gutierrez (2005), Yang, Zhou and Chen (2005), and Shin (2008); and for chewing gum, Chung and Szymanski (1997). All of these studies examine factors that affect brand selection.…”
Section: Introductionmentioning
confidence: 99%
“…This prediction helps the retail industry to maximize profit. It is a nonlinear statistical model created for the human brain and can be programmed and trained to identify data patterns (Kaya et al, 2010).…”
Section: Artificial Neural Network and Brand Choicementioning
confidence: 99%