Brand History, Geography, and the Persistence of Brand Shares

Journal of Political Economy 117, No. 1 (February 2009): 87-115, DOI:10.1086/597301

Chicago GSB Research Paper No. 08-21

Kilts Center for Marketing at Chicago Booth – Nielsen Dataset Paper Series. 2-003

34 Pages Posted: 29 Sep 2008 Last revised: 28 Aug 2016

See all articles by Bart J. Bronnenberg

Bart J. Bronnenberg

Tilburg University, CentER

Sanjay K. Dhar

University of Chicago - Marketing Management

Jean-Pierre Dubé

University of Chicago - Booth School of Business; National Bureau of Economic Research (NBER)

Date Written: November 20, 2008

Abstract

We study persistence in the geographic variation in market shares of branded goods in consumer packaged goods industries across 50 U.S. city-markets. We match scanner data on local market shares and survey data on local quality perceptions for the largest brands in 34 consumer packaged goods industries. These data are then matched with historic information on the year and US city-market in which each brand was first launched. We find that these consumer brands have persistently higher market shares in markets closest to their respective cities-of-origin than in markets farthest from their respective cities-of-origin, where they were typically launched later. For 6 of the 34 industries, we collected more complete historic entry data with which we can determine the local order of entry among the top brands in each of the 50 U.S. city-markets. We find a persistent effect from differences in the order-of-entry of competing brands on their current relative brand shares and quality perceptions across US cities. The historic order of entry also appears to correlate with the current rank-order of brand shares across cities, leading to large asymmetries across markets in brand shares and in quality perceptions. This persistence is particularly striking since many of the brands studied herein originated during the mid-to-late 19th and early 20th centuries, roughly a century prior to the sample period of the market share and quality perception data.

JEL Classification: L11, L66, M30, M37, R12

Suggested Citation

Bronnenberg, Bart J. and Dhar, Sanjay K. and Dube, Jean-Pierre H., Brand History, Geography, and the Persistence of Brand Shares (November 20, 2008). Journal of Political Economy 117, No. 1 (February 2009): 87-115, DOI:10.1086/597301; Chicago GSB Research Paper No. 08-21; Kilts Center for Marketing at Chicago Booth – Nielsen Dataset Paper Series. 2-003. Available at SSRN: https://ssrn.com/abstract=1273022

Bart J. Bronnenberg (Contact Author)

Tilburg University, CentER ( email )

Warandelaan 2
Tilburg, 5037 AB
Netherlands
+31 13 466 8939 (Phone)
+31 13 466 8354 (Fax)

Sanjay K. Dhar

University of Chicago - Marketing Management ( email )

Rosenwald 331C
Chicago, IL 60637
United States
773-702-3005 (Phone)
773-702-0458 (Fax)

Jean-Pierre H. Dube

University of Chicago - Booth School of Business ( email )

5807 South Woodlawn Avenue
Chicago, IL 60637
United States

HOME PAGE: http://gsb.uchicago.edu/fac/jean-pierre.dube

National Bureau of Economic Research (NBER) ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Register to save articles to
your library

Register

Paper statistics

Downloads
763
Abstract Views
3,641
rank
31,324
PlumX Metrics