Brand Inertia in U.S. Household Cheese Consumption

14 Pages Posted: 28 Apr 2020

See all articles by Carlos Arnade

Carlos Arnade

U.S. Department of Agriculture (USDA) - Economic Research Service (ERS) - Market & Trade Economics Division

Munisamy Gopinath

Oregon State University - Department of Applied Economics

Daniel Pick

affiliation not provided to SSRN

Multiple version iconThere are 2 versions of this paper

Date Written: August 2008

Abstract

To analyze U.S. consumers' brand choices for cheese purchases, we derive a set of discrete‐choice models from dynamic utility maximization. ACNielsen Homescan Survey data on U.S. households is used to estimate a dynamic probit model for each of the top brands for cheddar, shredded, and sliced cheese in four U.S. regions. We find that households have strong brand inertia, a result robust across alternative specifications. Predicted probabilities confirm greater inertia in the top brands and consumers are more likely to switch into them. Brand inertia is relatively larger in cheddar and sliced cheese especially in the Central and Southeast regions.

Keywords: brand choice, cheese demand, inertia, purchase probabilities

Suggested Citation

Arnade, Carlos and Gopinath, Munisamy and Pick, Daniel, Brand Inertia in U.S. Household Cheese Consumption (August 2008). American Journal of Agricultural Economics, Vol. 90, Issue 3, pp. 813-826, 2008, Available at SSRN: https://ssrn.com/abstract=3585273 or http://dx.doi.org/10.1111/j.1467-8276.2008.01176.x

Carlos Arnade (Contact Author)

U.S. Department of Agriculture (USDA) - Economic Research Service (ERS) - Market & Trade Economics Division ( email )

Washington, DC
United States

Munisamy Gopinath

Oregon State University - Department of Applied Economics ( email )

213 Ballard Extension Hall
Corvallis, OR 97331-4501
United States
541-737-1402 (Phone)
541-737-2563 (Fax)

Daniel Pick

affiliation not provided to SSRN

No Address Available

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