Dynamic brand satiation

Shohei Hasegawa, Nobuhiko Terui, Greg M. Allenby

Research output: Contribution to journalArticlepeer-review

9 Citations (Scopus)

Abstract

The authors develop a dynamic factor model of brand satiation to explain longitudinal variation in consumer purchases. Factor loadings are associated with a brand's position along a satiation dimension, and factor scores are associated with a household's sensitivity to satiation effects. The authors introduce dynamics by allowing the factor scores to evolve over time, reflecting variation in household satiation sensitivity. They embed the factor model in a direct utility model that allows for both corner and interior solutions and show that it fits the data better than alternative specifications. Analysis of a panel data set of corn chips purchases indicates that respondent satiation is better explained by a low-dimensional factor structure, while baseline utility and preferences are not. The authors explore implications for product line assortment in the face of quickening satiation.

Original languageEnglish
Pages (from-to)842-853
Number of pages12
JournalJournal of Marketing Research
Volume49
Issue number6
DOIs
Publication statusPublished - 2012 Dec 1

Keywords

  • Bayesian estimation
  • Compensating value
  • Dynamic satiation
  • Factor model
  • Multiple discreteness

ASJC Scopus subject areas

  • Business and International Management
  • Economics and Econometrics
  • Marketing

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