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Measuring changes in preferences and perception due to the entry of a new brand with choice data

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  • Lutz Hildebrandt
  • Lea Kalweit

Abstract

Context effects can have a major influence on brand choice behavior after the introduction of a new product. Based on behavioral literature, several hypotheses about the effects of a new brand on perception, preferences and choice behavior can be derived, but studies with real choice data are still lacking. We employ an internal market structure analysis to measure context effects caused by a new product in scanner panel data, and to discriminate between alternative theoretical explanations. An empirical investigation reveals strong support for categorization effects and changes in perception, which affect customers in two out of five segments.

Suggested Citation

  • Lutz Hildebrandt & Lea Kalweit, 2008. "Measuring changes in preferences and perception due to the entry of a new brand with choice data," SFB 649 Discussion Papers SFB649DP2008-057, Sonderforschungsbereich 649, Humboldt University, Berlin, Germany.
  • Handle: RePEc:hum:wpaper:sfb649dp2008-057
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    References listed on IDEAS

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    1. Rinus Haaijer & Michel Wedel & Marco Vriens & Tom Wansbeek, 1998. "Utility Covariances and Context Effects in Conjoint MNP Models," Marketing Science, INFORMS, vol. 17(3), pages 236-252.
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    5. Daniel McFadden & Kenneth Train, 2000. "Mixed MNL models for discrete response," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 15(5), pages 447-470.
    6. Huber, Joel & Payne, John W & Puto, Christopher, 1982. " Adding Asymmetrically Dominated Alternatives: Violations of Regularity and the Similarity Hypothesis," Journal of Consumer Research, Oxford University Press, vol. 9(1), pages 90-98, June.
    7. Pan, Yigang & Lehmann, Donald R, 1993. " The Influence of New Brand Entry on Subjective Brand Judgments," Journal of Consumer Research, Oxford University Press, vol. 20(1), pages 76-86, June.
    8. Lynch, John G, Jr & Chakravarti, Dipankar & Mitra, Anusree, 1991. " Contrast Effects in Consumer Judgments: Changes in Mental Representations or in the Anchoring of Rating Scales?," Journal of Consumer Research, Oxford University Press, vol. 18(3), pages 284-297, December.
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    More about this item

    Keywords

    context effects; categorization; brand choice models; new brand introduction;

    JEL classification:

    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation

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