Consumers' Extent of Evaluation in Brand Choice

Posted: 30 Mar 1999

See all articles by B. P. S. Murthi

B. P. S. Murthi

University of Texas at Dallas - Department of Marketing

Kannan Srinivasan

Carnegie Mellon University

Abstract

Brand choice models implicitly assume that consumers incorporate all relevant marketing information such as price, display, and feature for key brands on each purchase occasion. We examine whether consumers actively evaluate the brands on every occasion. We propose a multistate choice model with varying levels of evaluation and estimate the model with scanner data. In addition, we study the effect of household demographics, occasion-specific factors, as well as unmeasured household and purchase occasion factors on the extent of evaluation. The results indicate that consumers do not evaluate brands on all occasions. We discuss the implications of such limited evaluation.

JEL Classification: L11, M31

Suggested Citation

Murthi, B. P. S. and Srinivasan, Kannan, Consumers' Extent of Evaluation in Brand Choice. Available at SSRN: https://ssrn.com/abstract=146748

B. P. S. Murthi

University of Texas at Dallas - Department of Marketing ( email )

Dallas, TX
United States
972-883-6355 (Phone)
972-883-2799 (Fax)

Kannan Srinivasan (Contact Author)

Carnegie Mellon University ( email )

Pittsburgh, PA 15213-3890
United States

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