Measuring changes in preferences and perception due to the entry of a new brand with choice data

Lutz Hildebrandt and Lea Kalweit

No SFB649DP2008-057, SFB 649 Discussion Papers from Humboldt University, Collaborative Research Center 649

Abstract: Context effects can have a major influence on brand choice behavior after the introduction of a new product. Based on behavioral literature, several hypotheses about the effects of a new brand on perception, preferences and choice behavior can be derived, but studies with real choice data are still lacking. We employ an internal market structure analysis to measure context effects caused by a new product in scanner panel data, and to discriminate between alternative theoretical explanations. An empirical investigation reveals strong support for categorization effects and changes in perception, which affect customers in two out of five segments.

Keywords: context effects; categorization; brand choice models; new brand introduction (search for similar items in EconPapers)
JEL-codes: M31 C23 C51 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-com, nep-dcm, nep-mic and nep-mkt
Date: 2008-08
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