The Intergenerational Transmission of Automobile Brand Preferences: Empirical Evidence and Implications for Firm Strategy
We document a strong correlation in the brand of automobile chosen by parents and their adult children, using data from the Panel Study of Income Dynamics. This correlation could represent transmission of brand preferences across generations, or it could result from correlation in family characteristics that determine brand choice. We present a variety of empirical specifications that lend support to the former interpretation and to a mechanism that relies at least in part on state dependence. We then discuss implications of intergenerational brand preference transmission for automakers' product-line strategies and for the strategic pricing of vehicles to different age groups.
|Date of creation:||Oct 2013|
|Publication status:||published as Soren T. Anderson & Ryan Kellogg & Ashley Langer & James M. Sallee, 2015. "The Intergenerational Transmission of Automobile Brand Preferences," The Journal of Industrial Economics, vol 63(4), pages 763-793.|
|Contact details of provider:|| Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.|
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