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A habit-formation model of brand choice

Authors Han, Jin Kyung
Han, Sangman
Vanhonacker, Wilfried R.
Issue Date 1996-08
Summary It is becoming increasingly evident that consumers engage in established patterns of repeat-purchases (brand runs) in frequently-purchased product categories. As habits, by definition, employ instituted patterns of the past on the present, a habit-driven heuristic allows consumers to economize on the mental effort entailed in their brand choice decisions. In this context, we propose a brand choice model in which habits, represented as brand's prior run-lengths, play a reference role in impacting the stay-or-exit decision in the brand's current run. We empirically test and substantiate the habit phenomenon in two consumer goods product categories by demonstrating consumers' propensity to adhere to the brand's previous run-lengths as reference.
Language English
Format Working paper
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