NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

The Formation of Consumer Brand Preferences

Bart J. Bronnenberg, Jean-Pierre H. Dubé

NBER Working Paper No. 22691
Issued in September 2016
NBER Program(s):Industrial Organization

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.

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Document Object Identifier (DOI): 10.3386/w22691

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