IDEAS home Printed from https://ideas.repec.org/a/sae/vision/v10y2006i4p29-35.html
   My bibliography  Save this article

Consumer Brand-Choice and the Equimarginal Principle of Utility Maximization: A Re-Conceptualization

Author

Listed:
  • Sashi Sivramkrishna

Abstract

This article 1 questions the appropriateness of the equi-marginal principle of utility maximization in the context of brand choice. Two simple examples illustrate why this fundamental economic principle of consumer decision may be inadequate. We propose an alternative decision rule for utility maximization in the context of brand choice. This proposed decision rule helps understand a consumer's brand loyalty over repeated purchases at a given set of prices and also stickiness of brand choice to both, budget and price changes. This could have a significant bearing on demand estimation, which a priori specifies a downward sloping demand curve

Suggested Citation

  • Sashi Sivramkrishna, 2006. "Consumer Brand-Choice and the Equimarginal Principle of Utility Maximization: A Re-Conceptualization," Vision, , vol. 10(4), pages 29-35, October.
    • Handle: RePEc:sae:vision:v:10:y:2006:i:4:p:29-35
    DOI: 10.1177/097226290601000402
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/097226290601000402
    Download Restriction: no
    File URL: https://libkey.io/10.1177/097226290601000402?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:vision:v:10:y:2006:i:4:p:29-35. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.