TITLE

Consumer Learning and Brand Valuation: An Application on Over-the-Counter Drugs

AUTHOR(S)
Akçura, M. Tolga; Gönül, Füsun F.; Petrova, Elina
PUB. DATE
January 2004
SOURCE
Marketing Science;Winter2004, Vol. 23 Issue 1, p156
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
We develop a brand choice model with learning based on the Kalman filter methodology. The model enables us to separate the effects of contemporaneous marketing promotions from the impact of the perceived quality valuation accrued through product usage over time. We also account for idiosyncratic consumer learning and preferences. The results point to the presence of heterogeneity in the valuation carryover coefficients across consumers and brands. In contrast to our expectations, a higher price is not important for most of the consumers in the sample. The model enables us to compare brands in terms of their memorability, which determines brand salience on the next purchase occasion. Our findings suggest that price promotions may be deficient as a tool to increase market share in the studied product category. The proposed model is applicable to other consumer goods contingent on consumers' being sufficiently motivated to learn their own preference via personal experience. Brand managers can use the model for comparative diagnostics and market performance simulation under different price and promotion scenarios. This paper is instructive to the application of a relatively new methodology; we illustrate the analytical potential of the model by demonstrating its inferential power in a specific marketing context.
ACCESSION #
31167410

 

Related Articles

  • From Giotto to Botticelli: The Artistic Patronage of the Humiliati in Florence. BRASHER, SALLY M. // American Historical Review;Apr2017, Vol. 122 Issue 2, p569 

    No abstract available.

  • Does Your Brand Deserve Loyalty? Morrison, Ron // Sales & Service Excellence Essentials;Aug2007, Vol. 7 Issue 8, p5 

    The article focuses on the basic principles to build a brand that deserves loyalty. A company should create a vision and missions that are measurable, actionable, and observable by any person that interacts with its brand. A company should consider making an apology and offering refunds for...

  • Pint of View. LAGER, MARSHALL // CRM Magazine;Feb2016, Vol. 20 Issue 2, p44 

    The author observes that the love customers have for a brand is superficial. He states that real love of a brand comes from the employees of the company that provides it. He emphasizes that a company that loves its brands infuses that love into every employee. He explains that it is a deep love...

  • The Predictive Aspects of a Joint-Space Theory of Stochastic Choice. Best, Roger J. // Journal of Marketing Research (JMR);May76, Vol. 13 Issue 2, p198 

    An empirical study of the relationship between brand choice behavior and the distances between ideal points and brands displayed in joint-space configurations revealed five operative models of choice behavior. Seventy-three of 77 individual models were significant and 57 produced significant...

  • Brand Loyalty Revisited: A Commentary. Tarpey Sr., Lawrence X. // Journal of Marketing Research (JMR);Nov75, Vol. 12 Issue 4, p488 

    This article comments on the article "Brand Loyalty Vs. Repeat Purchasing Behavior," by Jacob Jacoby and David Kyner, which appeared in the February 1973 issue. The author claims that the major shortcoming of Jacoby and Kyner's original study is that it delivers an operational definition of...

  • Investigating Heterogeneity in Brand Preferences in Logit Models for Panel Data. Chintagunta, Pradeep K.; Jain, Dipak C.; Vilcassim, Naufel J. // Journal of Marketing Research (JMR);Nov91, Vol. 28 Issue 4, p417 

    In analyzing panel data, the issue of heterogeneity across households is an important consideration. If heterogeneity is present but is ignored in the analysis, it will result in biased and inconsistent estimates of the effects of marketing mix variables on brand choice. The authors propose the...

  • Why Does "Brand Loyalty" Vary Over Products. Farley, John U. // Journal of Marketing Research (JMR);Nov64, Vol. 1 Issue 4, p9 

    This paper tests hypotheses about why measured "brand loyalty" varies over product classes. Factor analysis is used to solve certain difficulties in the empirical testing. Brand switching in a product class appears to be associated with price activity, distribution, characteristics of the supply...

  • A Brand Loyalty Concept: Comments on a Comment. Jacoby, Jacob // Journal of Marketing Research (JMR);Nov75, Vol. 12 Issue 4, p484 

    This article presents the author's response to the comments of Lawrence Tarpey about the article "Brand Loyalty Vs. Repeat Purchasing Behavior," by Jacob Jacoby and David Kyner, which was published in the February 1973 issue. The author asserts that the research in the article does not warrant...

  • TRADEMARKS, PATENTS, AND INNOVATION IN THE ETHICAL DRUG INDUSTRY. Statman, Meir; Tyebjee, Tyzoon T. // Journal of Marketing;Summer81, Vol. 45 Issue 3, p71 

    The expiration of a patent for an ethical drug has only a minor effect on its market dominance. Brand loyalty towards the trademark of the off-patent drug is a barrier to the development of competition. Remedies to induce price competition are discussed, and their potential impact on drug...

Share

Read the Article

Courtesy of VIRGINIA BEACH PUBLIC LIBRARY AND SYSTEM

Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics