00-069
BRANDS, INFORMATION, AND LOYALTY
Bharat N. Anand and Ron Shachar
We empirically examine the role of brands as aggregators of
information. Using a dynamic, discrete choice model of viewing behavior in the
television industry, we find that brand attributes are more important than the
underlying product attributes in affecting viewing choices. The brand effect
is lower for shows for which viewers are likely to have more information, and
there is substantial heterogeneity across viewer groups in their reliance on
"brand information". More than 35% of the individual-brand match that has been
interpreted as individuals' "emotional attachment" to brands can be explained
by viewers having incomplete information on show attributes.
JEL Classification: D80, L82.
Key words: incomplete information, brands, state dependence, unobserved
heterogeneity, television networks.
C&S
38 pages
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