I am trying to compute Willingness to Pay based on the responses of a survey. I want to know based on which articles, or where I can find the formula used by JMP to compute the utility of the different products I evaluate.
In JMP Help platform (Consumer Research>Choice models>Statistical details>Utility and probabilities), there is a formula yielding the probability that a given subject makes a given choice. I do not really understand what the "subject attribute design row" or the "choice attribute design row" are, and how to evaluate them. And I think that the calculation of utility might be based on that probability, but I don't know how to perform it.
The bottom idea is that the Choice platform in JMP needs a very special formatting of data, and a special type of questions to get the data in shape and analyze it. I think I would be able to better understand which questions I can ask to get WTP if I understand the whole calculation behind it.
Thank you !
Help > Books > Consumer Research > Utility and Probabilities (pp. 130-131).
You're right, I read through your question a little too hastily. Sorry about that. The measures of "utility" are the model parameter estimates (the betas) of a logistic regression model. You have 2 matrices describing the covariates; X identifies the subject in the study Z identifies the choice set. You should have parameter estimates for each feature in your choice sets. The larger the number, the greater the average utility across all subjects. Sorry, I only have a minute to respond. I'll try to add more later if needed.
Good morning cwillden,
Thank you for the answer ! Do you think you could give me an example with two subjects and two choice sets for example, very basic, so I could understand better how it works ? Or redirect me towards a (not too advanced) article that describes it ?
I have trouble visualizing the shape of the matrices and what values they contain.
Basically then, the utility of a feature j for a given subject k would be the beta(X[k] x Z[j]) ? And to get the average utility, just average it over all subjects k ?
Thank you for your time !
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