infonet-economy

Hybrid choice models represent a new class of models which merge classical choice models with the structural e quation approach (SEM) for latent variables. Even though hybrid choice models allow for a more realistic explanation of choice behavior by incorporating latent constructs such as attitudes and values, applications in marketing are scarce. The present study on travel mode choice clearly underlines the value of hybrid choice models to enhance our understanding of choice processes. In addition to the usually studied directly observable variables such as travel time and cost, abstract motivations such as power as well as latent choice criteria such as flexibility strongly impact on travel mode choice. Moreover, we can show that it is possible to estimate hybrid choice models with the widely available structural equation modelling package Mplus.