This study examines whether differentiating outside good choices in discrete choice models, into channel switching, category substitution, and category exit, yield richer insights than treating it as a single no-choice option. Using instant coffee as a case study, we evaluate improvements in model fit, predictive validity, and stability of willingness-to-pay across consumer subgroups. By clarifying how consumers opt out, the approach enhances market realism and equips researchers with strategies to navigate demand shifts in competitive markets.
