Hurdle Model

Hurdle Model :

The hurdle model is a statistical model that is used to analyze the effect of multiple factors on a binary outcome. This model is often used in economics and marketing research to understand the factors that influence consumers’ decision-making process.
For example, a company may use the hurdle model to understand the factors that influence a customer’s decision to purchase their product. The first hurdle in the decision-making process is whether the customer is aware of the product. If the customer is aware of the product, the next hurdle is whether they are interested in purchasing it. If the customer is interested in purchasing the product, the final hurdle is whether they have the means to purchase it (e.g. sufficient funds).
In this example, the binary outcome is whether the customer makes a purchase or not. The first hurdle is awareness, the second hurdle is interest, and the third hurdle is the availability of funds. Each hurdle is analyzed separately to understand the factors that influence the decision-making process at each stage.
Another example of the hurdle model is in the analysis of voter turnout in an election. The first hurdle in the decision-making process is whether the individual is registered to vote. If they are registered, the next hurdle is whether they are aware of the election and interested in voting. If they are aware and interested, the final hurdle is whether they have the means to vote (e.g. transportation to the polling station).
In this example, the binary outcome is whether the individual casts a vote or not. The first hurdle is registration, the second hurdle is awareness and interest, and the third hurdle is the availability of transportation. The hurdle model can be used to understand the factors that influence voter turnout at each stage of the decision-making process.
Overall, the hurdle model is a useful tool for understanding the factors that influence a binary outcome in a decision-making process. By analyzing each hurdle separately, researchers can gain a better understanding of the factors that influence consumer or voter behavior.