Consumer Choice Prediction: Artificial Neural Networks versus Logistic Models

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  • Additional Information
    • Contributors:
      Christopher Gan; Visit Limsombunchai; Mike Clemes; Amy Weng
    • Publication Information:
      Science Publications
    • Collection:
      Directory of Open Access Journals
    • Abstract:
      Conventional econometric models, such as discriminant analysis and logistic regression have been used to predict consumer choice. However, in recent years, there has been a growing interest in applying artificial neural networks (ANN) to analyse consumer behaviour and to model the consumer decision-making process. The purpose of this paper is to empirically compare the predictive power of the probability neural network (PNN), a special class of neural networks and a MLFN with a logistic model on consumers’ choices between electronic banking and non-electronic banking. Data for this analysis was obtained through a mail survey sent to 1,960 New Zealand households. The questionnaire gathered information on the factors consumers’ use to decide between electronic banking versus non-electronic banking. The factors include service quality dimensions, perceived risk factors, user input factors, price factors, service product characteristics and individual factors. In addition, demographic variables including age, gender, marital status, ethnic background, educational qualification, employment, income and area of residence are considered in the analysis. Empirical results showed that both ANN models (MLFN and PNN) exhibit a higher overall percentage correct on consumer choice predictions than the logistic model. Furthermore, the PNN demonstrates to be the best predictive model since it has the highest overall percentage correct and a very low percentage error on both Type I and Type II errors.
    • Relation:
      Journal of Social Sciences
    • Rights:
      (All metadata for this Directory of Open Access Journals record is available under the Creative Commons Attribution-ShareAlike License (CC BY-SA).)
      All rights reserved
      Record supplied by The University of Auckland Library
    • Accession Number:
      edsdnz.35189368
  • Citations
    • ABNT:
      Consumer Choice Prediction: Artificial Neural Networks versus Logistic Models. Journal of Social Sciences, [s. l.], [s.d.]. Disponível em: . Acesso em: 12 nov. 2019.
    • AMA:
      Consumer Choice Prediction: Artificial Neural Networks versus Logistic Models. Journal of Social Sciences. http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsdnz&AN=edsdnz.35189368&custid=s8280428. Accessed November 12, 2019.
    • APA:
      Consumer Choice Prediction: Artificial Neural Networks versus Logistic Models. (n.d.). Journal of Social Sciences. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsdnz&AN=edsdnz.35189368&custid=s8280428
    • Chicago/Turabian: Author-Date:
      “Consumer Choice Prediction: Artificial Neural Networks versus Logistic Models.” 2019. Journal of Social Sciences. Accessed November 12. http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsdnz&AN=edsdnz.35189368&custid=s8280428.
    • Harvard:
      ‘Consumer Choice Prediction: Artificial Neural Networks versus Logistic Models’ (no date) Journal of Social Sciences. Available at: http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsdnz&AN=edsdnz.35189368&custid=s8280428 (Accessed: 12 November 2019).
    • Harvard: Australian:
      ‘Consumer Choice Prediction: Artificial Neural Networks versus Logistic Models’ n.d., Journal of Social Sciences, viewed 12 November 2019, .
    • MLA:
      “Consumer Choice Prediction: Artificial Neural Networks versus Logistic Models.” Journal of Social Sciences. EBSCOhost, search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsdnz&AN=edsdnz.35189368&custid=s8280428. Accessed 12 Nov. 2019.
    • Chicago/Turabian: Humanities:
      “Consumer Choice Prediction: Artificial Neural Networks versus Logistic Models.” Journal of Social Sciences. Accessed November 12, 2019. http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsdnz&AN=edsdnz.35189368&custid=s8280428.
    • Vancouver/ICMJE:
      Consumer Choice Prediction: Artificial Neural Networks versus Logistic Models. Journal of Social Sciences [Internet]. [cited 2019 Nov 12]; Available from: http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsdnz&AN=edsdnz.35189368&custid=s8280428