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Determinants of Brand Shares
Overview | Consumer Behavior | Pricing and Consumer Dynamics | Distribution Channels | Determinants of Brand Shares
“Endogenous Sunk Costs and the Geographic Distribution of Brand Shares”
Sanjay Dhar, James H. Lorie Professor of Marketing; Jean-Pierre Dubé, Professor of Marketing and Neubauer Family Faculty Fellow; Bart Bronnenberg, professor of marketing, UCLA
Summary: The authors seek to explain why shares of top national brands vary so widely across U.S. market areas. For example, some brands dominate on the West Coast but fail to play well on the East Coast. They make the case that historical investment in advertising accounts for the differences in shares. They rule out other explanations, such as a cost based explanation that brands do well in markets that are close to the point of manufacture or distribution.
