Working Paper: NBER ID: w22691
Authors: Bart J. Bronnenberg; Jean-Pierre H. Dub
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.
Keywords: Consumer Brand Preferences; Brand Capital; Market Structure
JEL Codes: L11; L15; M31; M37
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| brand familiarity (M37) | consumer choice (D10) |
| psychological switching costs (D91) | brand preference persistence (M37) |
| past brand experiences (M37) | current consumer choices (D16) |
| brand preferences (M37) | consumer behavior (D19) |
| initial brand entry (M13) | current market positions (L19) |