The Dirichlet distribution as a model of brand choice: further testing

Albert C. Bemmaor ()
Additional contact information
Albert C. Bemmaor: ESSEC Business School

Working Papers from HAL

Abstract: This paper provides further evidence on the appropriateness of the Dirichlet model for modeling brand choice. A simple estimation procedure is used and the model is tested on consumer panel data for three product categories (margarine, regular coffee and instant coffee). The results show that a) the model tends to underpredict the proportion of light users of a brand, b) compared to the Hendry model and to the Switching law, it provides an acceptable fit to aggregate switching data over consecutive choice occasions, and c) it gives an adequate description of the correlation between relative frequencies of choice across consumers. Consistently with previous studies, the Hendry model tends to overestimate repeat purchase whereas the switching law, like the Dirichlet model, does not indicate any systematic deviation in its predictions of Switching behavior.

Keywords: Dirichlet distribution; Brand choice (search for similar items in EconPapers)
Date: 1981-10-01
Note: View the original document on HAL open archive server: https://essec.hal.science/hal-01277075
References: Add references at CitEc
Citations:

Downloads: (external link)
https://essec.hal.science/hal-01277075/document (application/pdf)

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: https://EconPapers.repec.org/RePEc:hal:wpaper:hal-01277075

Access Statistics for this paper

More papers in Working Papers from HAL
Bibliographic data for series maintained by CCSD ().