Abstract
In this paper, the Bernoulli and the First Order brand switching models are put to test on two sets of panel data. Non-aggregate analysis indicates that a Bernoulli process may explain the brand choice behavior of consumers for frequently bought nondurable products. However, aggregate process seems to be of higher order. Moreover, the use of a simultaneous inference technique on consumer panel data is demonstrated.
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Based on a doctoral dissertation at the University of Rochester, Rochester, N.Y. 14627.
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Kesavan, R. Empirical tests of two stochastic models of consumer brand choice. JAMS 8, 264–276 (1980). https://doi.org/10.1007/BF02721889
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DOI: https://doi.org/10.1007/BF02721889