𝔖 Bobbio Scriptorium
✦   LIBER   ✦

The price consideration model of brand choice

✍ Scribed by Andrew Ching; Tülin Erdem; Michael Keane

Publisher
John Wiley and Sons
Year
2009
Tongue
English
Weight
242 KB
Volume
24
Category
Article
ISSN
0883-7252

No coin nor oath required. For personal study only.

✦ Synopsis

Abstract

The workhorse brand choice models in marketing are the multinomial logit (MNL) and nested multinomial logit (NMNL). These models place strong restrictions on how brand share and purchase incidence price elasticities are related. In this paper, we propose a new model of brand choice, the “price consideration” (PC) model, that allows more flexibility in this relationship. In the PC model, consumers do not observe prices in each period. Every week, a consumer decides whether to consider a category. Only then does he/she look at prices and decide whether and what to buy. Using scanner data, we show the PC model fits much better than MNL or NMNL. Simulations reveal the reason: the PC model provides a vastly superior fit to inter‐purchase spells. Copyright © 2009 John Wiley & Sons, Ltd.

📜 SIMILAR VOLUMES

The role of consideration sets in brand
The role of consideration sets in brand choice: The moderating role of product characteristics
✍ Jung-Chae Suh 📂 Article 📅 2009 🏛 John Wiley and Sons 🌐 English ⚖ 105 KB

## Abstract This study investigates the role of consideration sets in brand choice. Brand‐level aggregated data are used to capture the responses of consumers who face a number of international and domestic brands in markets rather than two or three brands in experimental designs, as in Chaudhuri a

The differential roles of brand credibil
The differential roles of brand credibility and brand prestige in consumer brand choice
✍ Tae Hyun Baek; Jooyoung Kim; Jay Hyunjae Yu 📂 Article 📅 2010 🏛 John Wiley and Sons 🌐 English ⚖ 107 KB

## Abstract This study explores how brand credibility and brand prestige affect brand purchase intention and empirically investigates how the combinatory mechanism of brand credibility and brand prestige materialize across multiple product categories. The proposed model of six latent constructs is

Maximum principles applied to a model of
Maximum principles applied to a model of consumer brand choice
✍ Josa A. Soeiro Ferreira 📂 Article 📅 1990 🏛 John Wiley and Sons 🌐 English ⚖ 765 KB

This paper presents an application of the maximum principle and the generalized maximum principle (a recent extension of that principle) to a discrete-time model of consumer choice behaviour. The model includes two brands in a market and uses a non-stationary first-order Markov chain. The optimizati

Neural networks and the multinomial logi
Neural networks and the multinomial logit for brand choice modelling: a hybrid approach
✍ Yves Bentz; Dwight Merunka 📂 Article 📅 2000 🏛 John Wiley and Sons 🌐 English ⚖ 260 KB 👁 2 views

The study of brand choice decisions with multiple alternatives has been successfully modelled for more than a decade using the Multinomial Logit model. Recently, neural network modelling has received increasing attention and has been applied to an array of marketing problems such as market response

Do brands of a feather flock together? S
Do brands of a feather flock together? Some exploratory findings on the role of individual brands in brand constellation choice
✍ Fredrik Lange 📂 Article 📅 2005 🏛 John Wiley and Sons 🌐 English ⚖ 131 KB 👁 2 views

In this paper, consumers' choice of brand constellations (eg Big Mac and Coke at McDonald's) are investigated by examining the roles of individual brands. The author proposes that marketers need to look beyond perceived fit between brands within a brand constellation. Therefore, this paper explores