An extended mover—stayer model for diagnosing the dynamics of trial and repeat for a new brand

Abstract

This paper proposes an approach that extends the mover-stayer model to examine the impact of a new brand on brand choice patterns in a mature, frequently purchased product category. The objective is to obtain insights into the dynamics of brand choice following trial and repeat purchase of the new brand. The analysis uses consumer panel data on brand choices over a limited number of consecutive purchase occasions spanning the new brand introduction. The estimated parameters of the model provide diagnostic information for possible managerial action. An illustrative empirical application of the model demonstrates some of the insights into consumer buying patterns following a new brand introduction and potential managerial implications.