Consumer behavior in the scratch card market: a double-hurdle approach

Abstract

This paper investigates how demographic and other forms of compulsive behaviour and personality are related to the buying frequency of Le Millionaire scratch cards. We employ cross-sectional micro-data obtained from our household drop-off survey with a sample size of 1007 observations. Consequently, we examine the double-hurdle model as an alternative to the Tobit model. The lognormal double-hurdle model is the best specification for the study according to the Vuong test. In essence, the “Big-Five” dimensions of personality traits, coupled with other factors such as age, gender, educational background, household income and marital status are found to play a sine qua non role in determining a consumer’s behaviour in the scratch card market.