Mixture amount model application for monetary constraints on individual activities

Consumer behavior generally deals with the purchase and the use of goods and services by consumers. Consumers use services and goods while conducting their activities and they have to purchase for these services and goods. In addition to that, individuals conduct their activities under budget constraints. However, constraints have received little attention in the conjoint analysis literature although constraints influence individual preferences. The aim of this paper is to apply a new approach for understanding how individuals make trade-off across their activity preferences such as shopping, out-of- home leisure and for understanding changes in attribute preferences under changes in available budget constraints. Therefore, a mixture amount design is used to conduct an experiment with four activities as attributes and four different available budgets as constraints.