Utility-consistent Brand Demand Systems with Endogeneous Category Consumption: Principles and Marketing Applications

摘要

This paper introduces the design and implementation of utility-consistent, brand, and category demand systems. It extends formal demand analysis to the area of brand and category demand, which directly concerns marketing researchers and managers. The proposed brand demand system is a set of interrelated demand functions that are derived explicitly from a utility function describing consumer preferences. The model general- izes by the integration of category expenditures, which are determined endogenously. The theoretical plausibility of the proposed demand model is demonstrated first and, Subsequently, brand and category level systems are derived.