AN EMPIRICAL-ANALYSIS OF PRIVATE BRAND DEMAND RECOGNIZING HETEROGENEOUS PREFERENCES AND CHOICE DYNAMICS

Panel data for a frequently bought packaged good is used to explore th e determinants of consumer demand for private label brands. The probab ilistic modelling of the relationships between consumer characteristic s and individual behaviour augments earlier work and identifies import ant determinants of store brand proneness. an essential methodological contribution lies in the explicit treatment of the role of inter-indi vidual differences and intra-individual dynamics in store brand choice . Particular attention is given to the interpretation of the findings. The results are shown to have important implications for marketing ma nagers and to point to significant directions for future research.