Empirical tests of two stochastic models of consumer brand choice
Journal of the Academy of Marketing Science · 1980 · Volume 8 · Issue 3
Abstract
In this paper, the Bernoulli and the First Order brand switching models are put to test on two sets of panel data. Non-aggregate analysis indicates that a Bernoulli process may explain the brand choice behavior of consumers for frequently bought nondurable products. However, aggregate process seems to be of higher order. Moreover, the use of a simultaneous inference technique on consumer panel data is demonstrated.
Keywords
Panel Data, Markov Chain Model, Product Class, Purchase Behavior, American Market Association
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