The Intergenerational Transmission of Automobile Brand Preferences: Empirical Evidence and Implications for Firm Strategy

Soren Anderson, Ryan Kellogg, Ashley Langer and James Sallee

No 19535, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We document a strong correlation in the brand of automobile chosen by parents and their adult children, using data from the Panel Study of Income Dynamics. This correlation could represent transmission of brand preferences across generations, or it could result from correlation in family characteristics that determine brand choice. We present a variety of empirical specifications that lend support to the former interpretation and to a mechanism that relies at least in part on state dependence. We then discuss implications of intergenerational brand preference transmission for automakers' product-line strategies and for the strategic pricing of vehicles to different age groups.

JEL-codes: D43 L13 L62 (search for similar items in EconPapers)
Date: 2013-10
New Economics Papers: this item is included in nep-cse, nep-ipr, nep-pr~, nep-mkt and nep-tre
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Citations: View citations in EconPapers (9)

Published as Soren T. Anderson & Ryan Kellogg & Ashley Langer & James M. Sallee, 2015. "The Intergenerational Transmission of Automobile Brand Preferences," The Journal of Industrial Economics, vol 63(4), pages 763-793.

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Working Paper: The Intergenerational Transmission of Automobile Brand Preferences: Empirical Evidence and Implications for Firm Strategy (2013)
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