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Brand Inertia in U.S. Household Cheese Consumption

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  • Carlos Arnade
  • Munisamy Gopinath
  • Daniel Pick

Abstract

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. Copyright 2008, Oxford University Press.

Suggested Citation

  • Carlos Arnade & Munisamy Gopinath & Daniel Pick, 2008. "Brand Inertia in U.S. Household Cheese Consumption," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(3), pages 813-826.
    • Handle: RePEc:oup:ajagec:v:90:y:2008:i:3:p:813-826
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    File URL: http://hdl.handle.net/10.1111/j.1467-8276.2008.01176.x
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    Cited by:

    1. Gorton, Matthew & Sauer, Johannes & Supatpongkul, Pajaree, 2009. "Investigating Thai Shopping Behaviour: Wet-Markets, Supermarkets and Food Quality," 83rd Annual Conference, March 30 - April 1, 2009, Dublin, Ireland 51054, Agricultural Economics Society.
    2. Zhuang, Yan & Dimitri, Carolyn & Jaenicke, Edward C., 2010. "Price Reactions And Organic Price Premiums For Private Label And Branded Milk," 115th Joint EAAE/AAEA Seminar, September 15-17, 2010, Freising-Weihenstephan, Germany 116388, European Association of Agricultural Economists.
    3. Chen Zhen & Justin L. Taylor & Mary K. Muth & Ephraim Leibtag, 2009. "Understanding Differences in Self-Reported Expenditures between Household Scanner Data and Diary Survey Data: A Comparison of Homescan and Consumer Expenditure Survey," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 31(3), pages 470-492.
    4. Békési, Dániel & Loy, Jens-Peter & Weiss, Christoph, 2013. "State Dependence and Preference Heterogeneity: The Hand of the Past on Breakfast Cereal Consumption," 87th Annual Conference, April 8-10, 2013, Warwick University, Coventry, UK 158699, Agricultural Economics Society.
    5. Jing Li & Edward C. Jaenicke & Tobenna D. Anekwe & Alessandro Bonanno, 2018. "Demand for ready‐to‐eat cereals with household‐level censored purchase data and nutrition label information: A distance metric approach," Agribusiness, John Wiley & Sons, Ltd., vol. 34(4), pages 687-713, October.
    6. Zakaria Babutsidze & Robin Cowan, 2014. "Showing or telling? Local interaction and organization of behavior," Journal of Economic Interaction and Coordination, Springer;Society for Economic Science with Heterogeneous Interacting Agents, vol. 9(2), pages 151-181, October.
    7. Li, Wenying & Dorfman, Jeffrey H., 2019. "The implications of heterogeneous habit in consumer beverage purchases on soda and sin taxes," Food Policy, Elsevier, vol. 84(C), pages 111-120.
    8. Beach, Robert H. & Zhen, Chen, 2008. "Consumer Purchasing Behavior in Response to Media Coverage of Avian Influenza," 2008 Annual Meeting, February 2-6, 2008, Dallas, Texas 6750, Southern Agricultural Economics Association.
    9. Linda Thunström, 2010. "Preference Heterogeneity and Habit Persistence: The Case of Breakfast Cereal Consumption," Journal of Agricultural Economics, Wiley Blackwell, vol. 61(1), pages 76-96, February.
    10. Li, Wenying & Dorfman, Jeffrey H., 2018. "Habit Formation with Smooth Transitions: Estimating Demand for U.S. Carbonated-Sweetened Beverages and Beer," 2018 Annual Meeting, August 5-7, Washington, D.C. 273852, Agricultural and Applied Economics Association.
    11. Chen, Bo & Saghaian, Sayed, 2017. "Does Consumers’ Preference for Organic Foods Affect Their Store Format Choices?," 2017 Annual Meeting, February 4-7, 2017, Mobile, Alabama 252827, Southern Agricultural Economics Association.
    12. Bouhlal, Yasser & Capps, Oral, Jr. & Ishdorj, Ariun, 2013. "Estimating the Censored Demand for U.S. Cheese Varieties Using Panel Data: Impact of Economic and Demographic Factors," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 151298, Agricultural and Applied Economics Association.
    13. Martina E. Reitmeier & Jutta Roosen, 2015. "Life Transitions and Brand Switching: How Changes in Social Relationships are Linked to Changes in Yogurt Brand and Grocery Chain Choice," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 63(4), pages 475-490, December.
    14. Zakaria Babutsidze & Robin Cowan, 2011. "Word-of-mouth interaction and the organization of behaviour," Documents de Travail de l'OFCE 2011-11, Observatoire Francais des Conjonctures Economiques (OFCE).

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