Demand heterogeneity and interbrand competition
An empirical analysis using choice models
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Consumers'' decisions are actually becoming more complicated. Consumers are not homogeneous; they differ from each other in their preferences, their experiences, their sociodemographical characteristics. Coupled with the increasing competition in Fast Moving Consumer Goods'' sector, a very complicate framework arises. In this context, brands need to reach consumers'' mind in order to be chosen from a large choice set. in this book, we analyse how heterogeneity influences consumer choice behavior and how it can be measured. In this respect, aspects such as the influence of price, price promotio...
Consumers'' decisions are actually becoming more complicated. Consumers are not homogeneous; they differ from each other in their preferences, their experiences, their sociodemographical characteristics. Coupled with the increasing competition in Fast Moving Consumer Goods'' sector, a very complicate framework arises. In this context, brands need to reach consumers'' mind in order to be chosen from a large choice set. in this book, we analyse how heterogeneity influences consumer choice behavior and how it can be measured. In this respect, aspects such as the influence of price, price promotions, store flyers, discounts and differences in loyalty behavior are taken into account. Arising from this framework, we aditionally analyze how brands compete for consumers'' mindspace. in order to do so, this book uses multinomial logit approach based on olive oil scanner choice data extracted from a hypermarket belonging to an international distribution group located in the South of Spain.
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