Consumer Learning and Brand Valuation : An Application on Over-the-Counter Drugs

@inproceedings{Akura2003ConsumerLA,
  title={Consumer Learning and Brand Valuation : An Application on Over-the-Counter Drugs},
  author={M. Tolga Akçura and Elina Petrova},
  year={2003}
}
We develop a brand choice model with learning based on the Kalman filter methodology. The model enables us to separate the effects of contemporaneous marketing promotions from the impact of the perceived quality valuation accrued through product usage over time. We estimate the model and allow for idiosyncratic consumer learning and preferences. The results point to the presence of consumer heterogeneity in the valuation carryover coefficients across consumers and brands. In contrast to our… CONTINUE READING