Incorporating Latent Variables into Discrete Choice Models - A Simultaneous Estimation Approach Using SEM Software

Integrated choice and latent variable (ICLV) models represent a promising new class of models which merge classic choice models with the structural equation approach (SEM) for latent variables. Despite their conceptual appeal, applications of ICLV models in marketing remain rare. We extend previous ICLV applications by first estimating a multinomial choice model and, second, by estimating hierarchical relations between latent variables. An empirical study on travel mode choice clearly demonstrates the value of ICLV models to enhance the understanding of choice processes. In addition to the usually studied directly observable variables such as travel time, we show how abstract motivations such as power and hedonism as well as attitudes such as a desire for flexibility impact on travel mode choice. Furthermore, we show that it is possible to estimate such a complex ICLV model with the widely available structural equation modeling package Mplus. This finding is likely to encourage more widespread application of this appealing model class in the marketing field.

Influences of Discriminatory Incidents on Immigrants’ Attitudes Toward German Society

This article presents findings from a quantitative survey (N = 301) to evaluate the impact discriminatory incidents have on the attitudes of immigrants towards the majority society in Germany.The findings show that there is a strong relationship between experiences of discrimination and a hostile or alienated attitude towards German society. As an attempt to explain this generalization from single incidents to the macro relation between immigrants and autochthonous Germans in general a theory of framing, taken from developments in the field of rational choice theory, is applied. The reasoning is that a generalizing and rather hostile framing in terms of the attitude towards Germans can minimize psychic, emotional and social costs resulting from acts of discrimination.