Do Taste and Quality Perception Influence Consumer Preferences for Wood? An Econometric Model with Latent Variables
The aim of our article was to understand consumer preferences for wood and competitive materials. Assuming that a wood product is composed of various attributes, we consider that consumers' choices are not guided by observed characteristics but, instead, by the quality perception consumers have of these attributes. An econometric model integrating this factor by means of latent variables allows us to analyze the influence of individual characteristics and information (external sources and/or experience) on product quality perception. We also include consumers' attitudes in the model by supposing that the importance consumers place on attributes accurately describes their tastes. Data on material choices (wood versus vinyl) for window frames validate our assumptions.
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Document Type: Research Article
Publication date: 2011-04-01
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