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An Investigation into the Order of the Brand Choice Process

Author

Listed:
  • Frank M. Bass

    (The University of Texas at Dallas)

  • Moshe M. Givon

    (Tel Aviv University)

  • Manohar U. Kalwani

    (Purdue University)

  • David Reibstein

    (University of Pennsylvania)

  • Gordon P. Wright

    (Purdue University)

Abstract

This paper investigates the order of the brand choice process at the individual family level using a variety of tests: , likelihood ratio, binomial runs, and multinomial runs tests. The test of stationarity developed permits separate analyses for stationary and nonstationary purchase sequences. Our analyses indicate that the purchase sequences of a majority of stationary consumers are consistent with the zero-order assumption. This result is observed for all the nine frequently-bought packaged goods studied with the use of panel data and for a product category (soft drinks) using experimental data.

Suggested Citation

  • Frank M. Bass & Moshe M. Givon & Manohar U. Kalwani & David Reibstein & Gordon P. Wright, 1984. "An Investigation into the Order of the Brand Choice Process," Marketing Science, INFORMS, vol. 3(4), pages 267-287.
    • Handle: RePEc:inm:ormksc:v:3:y:1984:i:4:p:267-287
    DOI: 10.1287/mksc.3.4.267
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    Citations

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    Cited by:

    1. Wu, Couchen & Chen, Hsiu-Li, 2000. "Counting your customers: Compounding customer's in-store decisions, interpurchase time and repurchasing behavior," European Journal of Operational Research, Elsevier, vol. 127(1), pages 109-119, November.
    2. Julia Levine & Stephan Seiler, 2022. "Identifying State Dependence in Brand Choice: Evidence from Hurricanes," CESifo Working Paper Series 9889, CESifo.
    3. Ehrenberg, Andrew S. C. & Uncles, Mark D. & Goodhardt, Gerald J., 2004. "Understanding brand performance measures: using Dirichlet benchmarks," Journal of Business Research, Elsevier, vol. 57(12), pages 1307-1325, December.
    4. Bogomolova, Svetlana & Anesbury, Zachary & Lockshin, Larry & Kapulski, Natasha & Bogomolov, Tim, 2019. "Exploring the incidence and antecedents of buying an FMCG brand and UPC for the first time," Journal of Retailing and Consumer Services, Elsevier, vol. 46(C), pages 121-129.
    5. Julia Levine & Stephan Seiler, 2023. "Identifying State Dependence in Brand Choice: Evidence from Hurricanes," Marketing Science, INFORMS, vol. 42(5), pages 934-957, September.
    6. Jackson, Tyrone W. & Perloff, Jeffrey M, 1996. "Personal computer brand loyalty," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt3w5958mx, Department of Agricultural & Resource Economics, UC Berkeley.
    7. Sanjay K. Dhar & Jagmohan S. Raju, 1998. "The Effects of Cross-Ruff Coupons on Sales and Profits," Management Science, INFORMS, vol. 44(11-Part-1), pages 1501-1516, November.
    8. Marshall Freimer & Dan Horsky, 2008. "Try It, You Will Like It—Does Consumer Learning Lead to Competitive Price Promotions?," Marketing Science, INFORMS, vol. 27(5), pages 796-810, 09-10.
    9. Park, Changwon & Senauer, Benjamin, 1996. "Estimation Of Household Brand-Size Choice Models For Spaghetti Products With Scanner Data," Working Papers 14336, University of Minnesota, The Food Industry Center.
    10. Dipak Jain & Shun- Chen Niu, 1987. "A Stochastic Model of Household Brand Switching Behavior," Discussion Papers 732, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
    11. Koen Pauwels & Dominique M. Hanssens, 2007. "Performance Regimes and Marketing Policy Shifts," Marketing Science, INFORMS, vol. 26(3), pages 293-311, 05-06.
    12. Mayukh Dass & Masoud Moradi & Fereshteh Zihagh, 2023. "Forecasting purchase rates of new products introduced in existing categories," Journal of Marketing Analytics, Palgrave Macmillan, vol. 11(3), pages 385-408, September.

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