Naz, Antonia Corinthia C and Mario Tuscan N. Naz. 2006. Modeling ...

Attributes of an Ecological Solid
Options
Waste Management Service 1 2
D. Garbage fee per sack of waste, in
Philippine Pesos, PhP
15 per sack
8 per sack
Please check your choice
Why did you choose this option? _____________________ ___________________
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3.2.2.2. Experimental and Sampling Design
The study for the business establishments involved a 2 3 x 4 main effects factorial
design. A fractional factorial experimental design with 24 options divided into 3 blocks
was used. Each respondent evaluated eight (8) choice sets. Each choice set compared a
constant fixed alternative (base case) or option 2 against a varying alternative in each
choice set. The researchers took a sample of 150 business establishments from the three
priority barangays. Samples were taken to represent each type of business
establishment. Every 50 business establishments were given one block of choice sets to
answer.
3.2.2.3. The Definition of Variables and the Econometric Models
Model 1: Basic Model (ECOSWAM Attributes only) of the Base Case
ViB = f (Xk, εB) (8a)
ViB = ASCB + β1B * C + β2B * WS + β3B * F+ β4B * PB (8b)
Model 2: Complete or Expanded Model (ECOSWAM attributes interacted with the
characteristics of the business establishments) of the Base Case
ViBC = f (Xk, ZmB, εB) (9)
Where: i = option = 1 , 2 (where option 2 is the base case in the choice set)
ViB = The probability that the business establishment will choose the
ith option in the choice set
Xk = Attributes of the ECOSWAM options
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βk = coefficients of the attributes, Xk
ASCB = Alternative specific constant for business establishments (zero
for base case
Z mB = Individual characteristics of the business establishment (B)
interacted with the attributes of the ECOSWAM service options
α MB = Coefficient of the ZMB interacted with a XK
εB = Error term to explain other factors affecting the choice that are
not included in the model for business establishments
Subscript B = Basic Business establishment Model 1
Subscript BC = Complete or Expanded Business establishment Model 2