Year: 2008
Type: article
Abstract: To analyze U.S. consumers' brand choices for cheese purchases, we derive a set of discrete‐choice models from dynamic utility maximization. ACNielsen Homescan Survey data on U.S. households is used to estimate a dynamic probit model for each of the top brands for cheddar, shredded, and sliced cheese in four U.S. regions. We find that households have strong brand inertia, a result robust across alternative specifications. Predicted probabilities confirm greater inertia in the top brands and consumers are more likely to switch into them. Brand inertia is relatively larger in cheddar and sliced cheese especially in the Central and Southeast regions.
Authors: Carlos Arnade, Munisamy Gopinath, Daniel Pick
Institution: Oregon State University
Language: English
Subfield: Marketing
Domain: Social Sciences
Open Access status: bronze
Funder: Economic Research Service
OpenAlex ID: W2167518686