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The existence of consumer negative s...
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Nguyen, Dan.
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The existence of consumer negative state dependence and its effect on product assortments.
Record Type:
Electronic resources : Monograph/item
Title/Author:
The existence of consumer negative state dependence and its effect on product assortments./
Author:
Nguyen, Dan.
Description:
49 p.
Notes:
Source: Dissertation Abstracts International, Volume: 76-11(E), Section: A.
Contained By:
Dissertation Abstracts International76-11A(E).
Subject:
Marketing. -
Online resource:
http://pqdd.sinica.edu.tw/twdaoapp/servlet/advanced?query=3712755
ISBN:
9781321897821
The existence of consumer negative state dependence and its effect on product assortments.
Nguyen, Dan.
The existence of consumer negative state dependence and its effect on product assortments.
- 49 p.
Source: Dissertation Abstracts International, Volume: 76-11(E), Section: A.
Thesis (Ph.D.)--The University of Chicago, 2015.
This item must not be sold to any third party vendors.
In this paper, I find that consumers exhibit, on average, negative flavor state dependence in the market for Minute Maid and Tropicana chilled punch. In contrast, past research usually finds positive state dependence in consumers' choices. If negative state dependence were interpreted as consumer variety seeking, intuition would suggest that firms should supply more products when consumers exhibit such behavior. Through a supply side model calibrated to data from the chilled punch market, I find that consumer negative state dependence does increase a firm's incentive to supply more products; but, this is mostly through business stealing. Without business stealing, negative state dependence would have a much smaller effect on the number of products offered by a firm and could even decrease it. For example, if the retailer is maximizing the category's store profits, negative state dependence decreases the likelihood that the retailer offers Tropicana's tropical punch; but, if the retailer gave autonomy to the brands and allowed them to compete for store profits, negative state dependence would increase that likelihood.
ISBN: 9781321897821Subjects--Topical Terms:
536353
Marketing.
The existence of consumer negative state dependence and its effect on product assortments.
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Source: Dissertation Abstracts International, Volume: 76-11(E), Section: A.
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Adviser: Jean Pierre Dube.
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Thesis (Ph.D.)--The University of Chicago, 2015.
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In this paper, I find that consumers exhibit, on average, negative flavor state dependence in the market for Minute Maid and Tropicana chilled punch. In contrast, past research usually finds positive state dependence in consumers' choices. If negative state dependence were interpreted as consumer variety seeking, intuition would suggest that firms should supply more products when consumers exhibit such behavior. Through a supply side model calibrated to data from the chilled punch market, I find that consumer negative state dependence does increase a firm's incentive to supply more products; but, this is mostly through business stealing. Without business stealing, negative state dependence would have a much smaller effect on the number of products offered by a firm and could even decrease it. For example, if the retailer is maximizing the category's store profits, negative state dependence decreases the likelihood that the retailer offers Tropicana's tropical punch; but, if the retailer gave autonomy to the brands and allowed them to compete for store profits, negative state dependence would increase that likelihood.
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http://pqdd.sinica.edu.tw/twdaoapp/servlet/advanced?query=3712755
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