Economics at your fingertips  

Modeling Heterogeneity and State Dependence in Consumer Choice Behavior

Michael Keane ()

Journal of Business & Economic Statistics, 1997, vol. 15, issue 3, 310-27

Abstract: In frequently-purchased-consumer-goods markets, consumer brand choices exhibit substantial persistence across purchase occasions. In this article, the author estimates a choice model that admits of both heterogeneity in preferences and true state dependence as sources of this persistence, using Nielsen scanner data on ketchup. He finds evidence for true state dependence in the choice process, even after controlling for a rich heterogeneity structure. Simulation of the model indicates that the long-term effect of a promotion-induced purchase on future purchase probabilities is positive but small.

Date: 1997
References: Add references at CitEc
Citations: View citations in EconPapers (123) Track citations by RSS feed

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Ordering information: This journal article can be ordered from

Access Statistics for this article

Journal of Business & Economic Statistics is currently edited by Jonathan H. Wright and Keisuke Hirano

More articles in Journal of Business & Economic Statistics from American Statistical Association
Bibliographic data for series maintained by Christopher F. Baum ().

Page updated 2021-05-06
Handle: RePEc:bes:jnlbes:v:15:y:1997:i:3:p:310-27