Home > Publications . Search All . Browse All . Country . Browse PSC Pubs . PSC Report Series

PSC In The News

RSS Feed icon

Miech on 'generational forgetting' about drug-use dangers

Impacts of H-1B visas: Lower prices and higher production - or lower wages and higher profits?

MTF data show 10% of 19-20 year-olds report bouts of drinking 10-plus alcoholic beverages

More News

Highlights

Call for papers: Conference on computational social science, April 2017, U-M

Sioban Harlow honored with 2017 Sarah Goddard Power Award for commitment to women's health

Post-doc fellowship in computational social science for summer or fall 2017, U-Penn

ICPSR Summer Program scholarships to support training in statistics, quantitative methods, research design, and data analysis

More Highlights

Next Brown Bag

Mon, Feb 13, 2017, noon:
Daniel Almirall, "Getting SMART about adaptive interventions"

Brand Effects On Choice And Choice Set Formation Under Uncertainty

Publication Abstract

Swait, Joffre Dan, and Tulin Erdem. 2007. "Brand Effects On Choice And Choice Set Formation Under Uncertainty." Marketing Science, 26(5): 679-697.

This paper examines the effects of brand credibility, a central concept in information economics-based approaches to brand effects and brand equity, on consumer choice and choice set formation. We investigate the mechanisms through which credibility effects materialize, namely, through perceived quality, perceived risk, and information costs saved. The credibility of a brand as a signal is defined as the believability of the product position information contained in a brand, which depends on consumer perceptions of the willingness and ability of firms to deliver what they have promised. The choice set is defined as the collection of brands that have a nonzero probability of being chosen among those actually available for choice in a given context. Furthermore, we study the impact of brand credibility on the variance of the stochastic component of utility. Not only do choice model parameters capture the impact of systematic utility differences on choice probabilities, but also the magnitude of this systematic impact is moderated by the relative importance of the stochastic utility component in preference. We term this moderation phenomenon preference discrimination, which we conceptualize as the decision makers' capacity to effectively discriminate between products' utilities in choice situations. We estimate a discrete choice model of brand choice set formation and preference discrimination on experimental data in two categories--juice and personal computers--and find strong evidence for brand credibility effects and differential mechanisms through which brand credibility's impact materializes on brand choice conditional on choice set, choice set formation, and preference discrimination

Browse | Search : All Pubs | Next