The Evolution of Brand Preferences: Evidence from Consumer Migration
We study the long-run evolution of brand preferences, using new data on consumers' life histories and purchases of consumer packaged goods. Variation in where consumers have lived in the past allows us to isolate the causal effect of past experiences on current purchases, holding constant contemporaneous supply-side factors such as availability, prices, and advertising. Heterogeneity in brand preferences explains 40 percent of geographic variation in market shares. These preferences develop endogenously as a function of consumers' life histories and are highly persistent once formed, with experiences 50 years in the past still exerting a significant effect on current consumption. Counterfactuals suggest that brand preferences create large entry barriers and durable advantages for incumbent firms, and can explain persistence of early-mover advantage over long periods. Variation across product categories shows that the persistence of brand preferences is related in an intuitive way to both advertising levels and the social visibility of consumption.
|Date of creation:||Aug 2010|
|Date of revision:|
|Publication status:||published as Bronnenberg, Bart J., Jean-Pierre H. Dubé, and Matthew Gentzkow. 2012. "The Evolution of Brand Preferences: Evidence from Consumer Migration." American Economic Review, 102(6): 2472-2508.|
|Contact details of provider:|| Postal: |
Web page: http://www.nber.org
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- David Atkin, 2013.
"Trade, Tastes and Nutrition in India,"
- Lucia Foster & John C. Haltiwanger & Chad Syverson, 2012.
"The Slow Growth of New Plants: Learning about Demand?,"
NBER Working Papers
17853, National Bureau of Economic Research, Inc.
- Lucia Foster & John Haltiwanger & Chad Syverson, 2012. "The Slow Growth of New Plants: Learning about Demand?," Working Papers 12-06, Center for Economic Studies, U.S. Census Bureau.
- John Haltiwanger & Chad Syverson & Lucia Foster, 2010. "The Slow Growth of New Plants: Learning about Demand?," 2010 Meeting Papers 128, Society for Economic Dynamics.
- John Haltiwanger & Chad Syverson & Lucia Foster, 2010. "The Slow Growth of New Plants: Learning about Demand?," 2010 Meeting Papers 106, Society for Economic Dynamics.
- James J. Heckman & James M. Snyder, Jr., 1996. "Linear Probability Models of the Demand for Attributes with an Empirical Application to Estimating the Preferences of Legislators," NBER Working Papers 5785, National Bureau of Economic Research, Inc.
- Davina C. Ling & Ernst R. Berndt & Margaret K. Kyle, 2002. "Deregulating Direct-to-Consumer Marketing of Prescription Drugs: Effects on Prescription and Over-the-Counter Product Sales," Journal of Law and Economics, University of Chicago Press, vol. 45(S2), pages 691-723.
- Erzo F.P. Luttmer & Monica Singhal, 2008.
"Culture, Context, and the Taste for Redistribution,"
NBER Working Papers
14268, National Bureau of Economic Research, Inc.
- Erzo F. P. Luttmer & Monica Singhal, 2011. "Culture, Context, and the Taste for Redistribution," American Economic Journal: Economic Policy, American Economic Association, vol. 3(1), pages 157-79, February.
- Luttmer, Erzo F. P. & Singhal, Monica, 2008. "Culture, Context, and the Taste for Redistribution," Working Paper Series rwp08-038, Harvard University, John F. Kennedy School of Government.
- Liran Einav & Ephraim Leibtag & Aviv Nevo, 2010. "Recording discrepancies in Nielsen Homescan data: Are they present and do they matter?," Quantitative Marketing and Economics, Springer, vol. 8(2), pages 207-239, June.
When requesting a correction, please mention this item's handle: RePEc:nbr:nberwo:16267. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If references are entirely missing, you can add them using this form.