What is discrete choice modeling?
Discrete choice modeling (DCM), sometimes called qualitative choice modeling, is an exciting new statistical technique sweeping the world of market research. DCM looks at choices that customers make between products or services. By identifying patterns in these choices, DCM models how different consumers respond to competing products. DCM allows marketers to examine the share impact of product configuration, service bundling, pricing and promotion on different classes of customers. For the first time, businesses have a quantitative tool for designing and pricing products to optimize competitive advantage.