Effect of Business Cycles on Consumers'Reliance on Brands: Moderating Role of Brand and Product Characteristics

摘要

1.Do the business cycle fluctuations contribute to temporary changes in consumers'reliance on brands? 2.Do the business cycle fluctuations have long term impact on consumers'reliance on brands? 3.Which brand and product category characteristics explain heterogeneous effect of business cycle fluctuations on consumers'reliance on brands? In the first step,scanner panel data is used to get yearly brand equity estimates based on the sales-based brand equity approach(the intercept method).Next,Hodrick-Prescott Filtering is used to extract cyclical component of GDP per capita(as the measure for business cycles)and decompose brand equity measures into cyclical(short term)and trend(long term)components.Finally,cyclical and trend components of brand equity are regressed on cyclical component of GDP to capture short and long term effects of business cycles on consumers'reliance on brands.