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A composite model of brand choice is presented. It allows individuals to differ in the order of the stochastic process they follow as well as in the magnitude of the process parameters. Procedures for estimating the parameters of the composite model and selecting the best submodel are proposed. Examination of several sets of panel data reveals that in some product categories consumers seem to follow the Linear Learning Model, in some the Bernoulli model, and in some divide into Markovian and Bernoulli segments.
Givon et al. (Tue,) studied this question.