A simple and flexible choice model is presented that
accommodates within-consumer variability in inertia and variety-seeking
tendencies. The chief advantage of the hybrid model is its ability to
distinguish mixtures of inertia and variety-seeking from other, simpler, types
of behavior. Estimation and testing of the model on a large sample of households
revealed that over 1/2 the households exhibited some mixture of inertia and
variety-seeking, which is consistent with existing theories of exploratory
behavior. The results also indicate the need to develop and estimate choice
models at the individual level. Consumers were found to be heterogeneous with
regard to the type of behavior exhibited. In addition, households that exhibited
hybrid behavior appeared to be quite heterogeneous in the relative strengths of
their inertia and variety-seeking tendencies. Although previous studies have
demonstrated that purchase event feedback often influences choice behavior, the
results of this study suggest that feedback may work in more complex ways than
previously considered.
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