What is Discrete Choice Modeling?
Discrete choice models describe, explain, and predict choices between two or more discrete alternatives, such as clicking on a button or not clicking on a button. Most research methods examine 'how much' has changed, and people try and interpret that data; instead Choice Modelling helps you monitor real behavior and determines 'Which one'.
Predictive Choice modelling can be used to predict the outcome in any situation where human choice is involved, and goes beyond passive customer analytics by allowing marketers and retention experts to make decisions based on expected future results.
The applications of Choice Modelling are numerous – it has been used to estimate demand of existing products and to forecast demand for new ones. It has been used to observe the effects of subtle layout and wording changes to marketing materials and even to measure the direct dollar valuation of brands.
Furthermore, Choice Modeling allows the exploration of vast numbers of possible configurations, of the order of many trillions, something infeasible with traditional research methods.