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Journal Article

Analyzing and Predicting Heterogeneous Customer Preferences in China's Auto Market Using Choice Modeling and Network Analysis

2015-04-14
2015-01-0468
As the world's largest auto producer and consumer, China is both the most promising and complex market given the country's rapid economic growth, huge population, and many regional and segment preference differences. This research is aimed at developing data-driven demand models for customer preference analysis and prediction under a competitive market environment. Regional analysis is first used to understand the impact of geographical factors on customer preference. After a comprehensive data exploration, a customer-level mixed logit model is built to shed light on fast-growing vehicle segments in the Chinese auto market. By combining the data of vehicle purchase, consideration, and past choice, cross-shopping behaviors and brand influence are explicitly modeled in addition to the impact of customer demographics, usage behaviors, and attributes of vehicles.
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