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The substitutability of brands
Author(s) -
Foxall Gordon R.
Publication year - 1999
Publication title -
managerial and decision economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.288
H-Index - 51
eISSN - 1099-1468
pISSN - 0143-6570
DOI - 10.1002/(sici)1099-1468(199908)20:5<241::aid-mde936>3.0.co;2-u
Subject(s) - imperfect , purchasing , advertising , brand extension , business , matching (statistics) , economics , microeconomics , equivalence (formal languages) , brand management , marketing , mathematics , philosophy , linguistics , statistics , discrete mathematics
A behavior analytical interpretation of consumer brand choice is proposed. The brands studied are of fast‐moving consumer goods (FMCG) which are functionally substitutable but differentiated by marketing activity (‘branding’). If functional equivalence was the sole basis of brand substitutability, consumers would either practice single brand purchasing or allocate purchases approximately indifferently (and approximately equally) among competing brands. Brand shares would tend at equilibrium toward equal size. But consumers typically buy several brands of those available, while brand shares vary markedly. The observed patterns of consumer choice are consistent with the predictions of matching theory if brands are assumed to be imperfect substitutes that provide qualitatively different reinforcers. Copyright © 1999 John Wiley & Sons, Ltd.