Brand Inertia in U.S. Household Cheese Consumption

Carlos Arnade, Munisamy Gopinath and Daniel Pick

American Journal of Agricultural Economics, 2008, vol. 90, issue 3, 813-826

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. Copyright 2008, Oxford University Press.

Date: 2008
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