Brand Inertia in U.S. Household Cheese Consumption

Posted: 17 Jun 2008

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

U.S. Department of Agriculture (USDA) - Economic Research Service (ERS)

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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.

Suggested Citation

Arnade, Carlos and Gopinath, Munisamy and Pick, Daniel, Brand Inertia in U.S. Household Cheese Consumption. American Journal of Agricultural Economics, Vol. 90, No. 3, pp. 813-826, August 2008, Available at SSRN: https://ssrn.com/abstract=1146690 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

U.S. Department of Agriculture (USDA) - Economic Research Service (ERS) ( email )

355 E Street, SW
Washington, DC 20024-3221
United States
202-219-0353 (Phone)
202-501-8517 (Fax)

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