An Integrated Model of Category Demand and Brand Choice

This paper presents a unified model of brand choice and category demand calibrated at the household level.
  

An Integrated Model of Category Demand and Brand Choice

George BaltasUniversity of Warwick

Introduction

In frequently bought products, two dimensions of purchase behaviour are particularly important for market researchers – how much of the product category to buy and which brands of the category to choose.

In market research, most work on purchase behaviour has focused on brand choice. Nevertheless, empirical studies have begun to emerge that deal with the interdependent modelling of discrete (what to buy) and continuous (how much to buy) decisions. For example, researchers have attempted to analyse jointly the quantity bought of a...

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