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The Formation of Consumer Brand Preferences

Author

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  • Bart J. Bronnenberg
  • Jean-Pierre H. Dubé
Abstract
Brands and brand capital have long been theorized to play an important role in the formation of the industrial market structure of consumer goods industries. We summarize several striking empirical regularities in the concentration, magnitude and persistence of brand market shares in consumer goods categories. We then survey the theoretical and empirical literatures on the formation of brand preferences and how brand preferences contribute to our understanding of these empirical regularities. We also review the literature on how brand capital creates strategic advantages to firms that own established brands.

Suggested Citation

  • Bart J. Bronnenberg & Jean-Pierre H. Dubé, 2016. "The Formation of Consumer Brand Preferences," NBER Working Papers 22691, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:22691
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    JEL classification:

    • A3 - General Economics and Teaching - - Multisubject Collective Works
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D4 - Microeconomics - - Market Structure, Pricing, and Design
    • L0 - Industrial Organization - - General
    • L00 - Industrial Organization - - General - - - General
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing
    • M37 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Advertising
    • Y1 - Miscellaneous Categories - - Data: Tables and Charts
    • Y10 - Miscellaneous Categories - - Data: Tables and Charts - - - Data: Tables and Charts
    • Y5 - Miscellaneous Categories - - Further Reading
    • Y50 - Miscellaneous Categories - - Further Reading - - - Further Reading

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