A Multiple Ideal Point Model: Capturing Multiple Preference Effects from within an Ideal Point Framework

Previous research has suggested that households and individuals may possess multiple preferences for a given product category. These multiple preferences may be the result of multiple individuals in a household, different uses and usage occasions, and/or variety seeking. As such, single ideal point models that assume a single invariant ideal point may be operating from a false and misleading assumption. We propose a multiple ideal point model to capture these multiple preference effects. The basic premise of the model is that consumers may possess a set of ideal points, each of which represents a distinct preference. At any given purchase occasion, one of these points is "activated" with some probability, and choices are made with respect to its characteristics. In this article, the authors assess the multiple ideal point model and an associated estimation procedure with respect to the model's ability to recover a true choice structure. The authors then empirically test the model on Information Resources Inc. panel data from the powdered soft drink category. The authors discuss the results and introduce directions for further research.