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CBC Latent Class Technical Paper (2004)

The CBC Latent Class Module is an add-on system to the CBC System for Choice-Based Conjoint. Latent Class analysis is a technique for dividing respondents into segments having similar preferences. Latent Class simultaneously estimates utilities for each segment and the probability that each respondent belongs to each segment.

Latent Class can improve the quality of marketing simulations over traditional aggregate logit modeling. It helps reduce IIA (red bus/blue bus) problems. This module also lets you fit linear terms to quantitative attributes.

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