The evolution of brand preferences and choice behaviors of consumers new to a market

The authors examine how brand preferences and response to marketing activit y evolve for consumers new to a market. They develop a theoretical framewor k that begins with a consumer's first-ever purchase in a product category a nd describes subsequent purchases as components of sequential purchasing st ages. The theory is based on the notion that choices made by consumers new to a market are driven by two competing forces: consumers' desire to collec t information about alternatives and their aversion to trying risky ones. T hese forces give rise to three stages of purchasing: an information collect ion stage that focuses initially on low-risk, big brand names; a stage in w hich information collection continues but is extended to lesser-known brand s; and a stage of information consolidation leading to preference for the b rands that provide the greatest utility. The authors use a legit-mixture mo del with time-varying parameters to capture the choice dynamics of differen t consumer segments, The results show the importance of accounting for prod uct experience and learning when studying the dynamic choice processes of c onsumers new to a market, Insights from this study can help marketers tailo r their marketing activities as consumers gain purchasing experience.