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How Do Experience and Shopping Frequency Affect Consumers Brand Choice
| Content Provider | Semantic Scholar |
|---|---|
| Author | Farina, Tatiana |
| Copyright Year | 2011 |
| Abstract | Consumers behave very dierently when they do not have perfect information about all brands available on a shelf. In this paper I extend the benchmark discrete choice model of consumer demand to capture two distinct features of experience-goods markets: prior brand experience and shopping frequency. Although the current literature incorporates habit formation in consumer demand models, it has not considered a more fundamental question: how the rst experience with a brand aects the consumer’s choice. I estimate the model using data on purchases of packaged orange juice, which comes from a new consumerlevel panel provided by a large supermarket chain in Brazil. I nd that for this product prior experience of a brand is as important for a consumer’s choice as price. Furthermore, own- and cross-price elasticities change signicantly when experience and shopping frequency are taken |
| File Format | PDF HTM / HTML |
| Alternate Webpage(s) | https://www.insper.edu.br/wp-content/uploads/2012/06/2011_wpe257.pdf |
| Language | English |
| Access Restriction | Open |
| Content Type | Text |
| Resource Type | Article |
