The Formation of Consumer Brand Preferences
Bart J. Bronnenberg and
Jean-Pierre H. Dubé
No 22691, NBER Working Papers from National Bureau of Economic Research, Inc
Brands and brand capital have long been theorized to play an important role in the formation of the industrial market structure of consumer goods industries. We summarize several striking empirical regularities in the concentration, magnitude and persistence of brand market shares in consumer goods categories. We then survey the theoretical and empirical literatures on the formation of brand preferences and how brand preferences contribute to our understanding of these empirical regularities. We also review the literature on how brand capital creates strategic advantages to firms that own established brands.
JEL-codes: A3 D12 D4 L0 L00 L11 L15 M31 M37 Y1 Y10 Y5 Y50 (search for similar items in EconPapers)
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