The authors use the multinomial adjacent-categories logit (ACL) random effects model to explore preferences for products reflecting various socially responsible practices. The ACL model is uniquely appropriate to an experimental choice situation in which subjects make repeated choices among alternatives in multiple purchasing situations and more than two choice alternatives are fully ordered. Subjects were presented with a choice between socially responsible and more conventional but lower priced versions of a product in each of nine purchasing situations. Subjects were then asked to repeat the choice task under two different relative price conditions. Subjects therefore could choose the more socially responsible product never, once (at the lowest price differential), twice, or three times (at the highest price differential). The ACL model allows the comparison of selection odds across these ordered categories, providing insights that are not otherwise available.
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Last updated: February 4, 2003
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© 2003, Iain Pardoe, Lundquist College of Business, University of Oregon