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Research Article

An Empirical Study on Store Choice Behavior Using Multinomial Logit Models

Ahn, Gwangho · Chae, Seoil

Published: January 1993 · Vol. 22, No. 2 · pp. 101-120
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Abstract

The purpose of this study is to introduce the Multinomial Logit (MNL) model, one of the widely known discrete choice models useful for explaining and predicting consumer choice behavior, and to conduct an empirical analysis. After discussing the theoretical background, assumptions, and characteristics of the MNL model, this model was used to empirically analyze consumer choice behavior regarding large department stores in the Gangnam area. The empirical results revealed that travel time to the store is a significant factor influencing consumers' department store selection, supporting the findings of Huff model research. Finally, the marketing strategic implications and limitations of this study were presented.