An empirical analysis of private brand demand recognising heterogeneous preferences and choice dynamics

Panel data for a frequently bought packaged good are used to explore the determinants of consumer demand for private label brands. The probabilistic modelling of the relationships between consumer characteristics and individual behaviour augments earlier work and identifies important determinants of store brand proneness. An essential methodological contribution lies in the explicit treatment of the role of inter-individual 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 managers and to point to significant directions for future research.