The Asymmetric Information Model of State Dependence

Moshkin, Nickolay V.; Shachar, Ron
September 2002
Marketing Science;Fall2002, Vol. 21 Issue 4, p435
Academic Journal
Marketing researchers and practitioners are interested in a specific aspect of persistence--brand loyalty (repeat-purchase), because of its managerial consequences. This study focuses on the stronger form of loyalty, in which although firms offer a new product in each period, consumers continue to purchase from the same firm. Repeat-purchase might result from state dependence or from heterogeneity. State dependence means that current choices behaviorally depend on previous ones (which is the state). This study shows that existing explanations of state dependence are incomplete, presents another source and demonstrates how a researcher can distinguish between the two sources of state dependence with standard panel data. Section 2 presents two choice models: the utility state dependence model (UM). Using panel data on television viewing choices in the US (presented in section 3) and structural estimation (described in section 4), the authors show in section 5 that the data provide solid support for the information state dependence model (IM).


Related Articles

  • `Trading Spaces'. Pendleton, Jennifer // Advertising Age;11/17/2003, Vol. 74 Issue 46, pS-2 

    This article focuses on the television program "Trading Spaces." Sharon Markowitz Bennett, after joining Discovery Communications' consumer products unit as senior vice president for strategic partnerships and licensing, surmised that the cable hit could be easily mined for licensing and...

  • TV shopping series showcase for new products in real-use situations.  // Marketing News;9/11/87, Vol. 21 Issue 19, p24 

    The article focuses on the television home shopping program "New Products Showcase" that allows manufacturers to test their products before the audience before launching a marketing campaign in the U.S. The program is produced by Tim Hawthorne and directed by Rodney Benn. On-location scenes are...

  • CN Makes a Hallmark Deal; Wubbzy Chummy with FP. Ebenkamp, Becky; Wasserman, Todd // Brandweek;2/5/2007, Vol. 48 Issue 6, p8 

    The article presents business news briefs. Cartoon Network television has signed a deal with the Hallmark greeting card company. Cartoon icons will debut on party supplies and more. The show "Wow! Wow! Wubbzy!" is a Nick Jr. station children's show that produces content to keep parents...

  • AN EXPERIMENTAL STUDY OF THE EFFECTS OF COMMERCIAL TV ADVERTISING AND PRO-CONSUMER PRODUCT TEST RESULTS ON TV. Chéron, Emmanuel J.; Perrien, Jean // Advances in Consumer Research;1981, Vol. 8 Issue 1, p423 

    The relative effect of commercial TV advertising was experimentally tested in comparison with pro-consumer TV program giving product test results. The experiment involved 125 consumers who were on a shopping trip to a local store. Subjects who volonteered were asked to view a 10 minute videotape...

  • TV branding isn't for show. Mortimer, Ruth // Brand Strategy;Jun2002, Issue 160, p27 

    Discusses the branding strategy for the television program 'The Saturday Show,' a children's morning magazine show on Saturdays at BBC1 in Great Britain which was launched in September 2001. Considerations and strategy of brand and design agency Saatchi & Saatchi Design; Background on the...

  • Watching Television, With or Without a TV. Dolliver, Mark // Brandweek;2/8/2010, Vol. 51 Issue 6, p15 

    The article presents the results of a survey on the electronic distribution channels by which young adults prefer to view television programs.

  • Style Hunter. Ram, Archana // Entertainment Weekly;10/8/2010, Issue 1123, p33 

    The article presents information on where items seen on television programs can be purchased including a purse seen on "Cougar Town," a dress seen on "90210," and a pendant seen on "Glee."

  • MY STUFF. Joel, Katie Lee // Vanity Fair;Feb2008, Issue 570, p78 

    A list is presented of the brand preferences in various consumer goods and services of Katie Lee Joel, a judge on the cookery television program "Iron Chef America."

  • Preference for Television Stations among Inhabitants of Akropong Akuapem, Ghana. Alhassan, Hamdiyah; Kwakwa, Paul Adjei // Online Journal of Communication & Media Technologies;Jan2013, Vol. 3 Issue 1, p195 

    With little known about the preference for individuals in semi-rural areas' choice and preference for television (TV) stations and programmes, this study was carried out using a semi-rural town in Ghana, Akropong-Akuapem. The findings were that, the participants watched the TV for education,...


Read the Article


Sign out of this library

Other Topics