Dynamic Brand Satiation

The authors develop a dynamic factor model of brand satiation to explain longitudinal variation in consumer purchases. Factor loadings are associated with a brand's position along a satiation dimension, and factor scores are associated with a household's sensitivity to satiation effects. The authors introduce dynamics by allowing the factor scores to evolve over time, reflecting variation in household satiation sensitivity. They embed the factor model in a direct utility model that allows for both corner and interior solutions and show that it fits the data better than alternative specifications. Analysis of a panel data set of corn chips purchases indicates that respondent satiation is better explained by a low-dimensional factor structure, while baseline utility and preferences are not. The authors explore implications for product line assortment in the face of quickening satiation.

• 저널Journal of Marketing Research · 49(6) · 842–853
• 토픽Consumer Market Behavior and Pricing · Marketing
• DOI10.1509/jmr.11.0036
• 저자Shohei Hasegawa, Nobuhiko Terui, Greg M. Allenby