Development of discrete choice model considering internal reference points and their effects in travel mode choice context

Abstract

In the conventional travel behavior models such as logit and probit, decision makers are assumed to conduct the absolute evaluations on the attributes of the choice alternatives. On the other hand, many researchers in cognitive psychology and marketing science have been suggesting that the perceptions of attributes are characterized by the benchmark called "reference points" and the relative evaluations based on them are often employed in various choice situations. Therefore, this study developed a travel behavior model based on the mental accounting theory in which the internal reference points are explicitly considered. A questionnaire survey about the shopping trip to the CBD in Matsuyama city was conducted, and then the roles of reference points in travel mode choice contexts were investigated. The result showed that the goodness-of-fit of the developed model was higher than that of the conventional model, indicating that the internal reference points might play the major roles in the choice of travel mode. Also shown was that the respondents seem to utilize various reference points: some tend to adopt the lowest fuel price they have experienced, others employ fare price they feel in perceptions of the travel cost.