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Brand Inertia in U.S. Household Cheese Consumption
Author(s) -
Arnade Carlos,
Gopinath Munisamy,
Pick Daniel
Publication year - 2008
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.1111/j.1467-8276.2008.01176.x
Subject(s) - inertia , consumption (sociology) , econometrics , economics , probit model , maximization , ordered probit , probit , utility maximization , microeconomics , business , mathematical economics , social science , physics , classical mechanics , sociology
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.