What Consumers Maximize: Brand Choice as a Function of Utilitarian and Informational Reinforcement

Abstract

Models of brand choice have not explained the formation of brand repertoires nor heterogeneity in consumers' preferences. Based upon the Behavioral Perspective Model, the present research proposed that consumers maximize utility as a function of the level of utilitarian (functional) and informational (social) reinforcement offered by brands. A model of consumer choice, which applied a Cobb–Douglas utility function to the parameters that constitute the Behavioral Perspective Model, was constructed and data from a consumer panel, including information from more than 1200 consumers purchasing four food products during 52 weeks, were used to test the model. The model fits the data well, showing consistent parameters and stable individual differences in utility across time. Results indicate that consumers maximize utilitarian and informational reinforcement when choosing brands. Copyright © 2015 John Wiley & Sons, Ltd.