Characterizing Brand Effects on Choice and Choice Set Formation Under Uncertainty

摘要: This paper examines the effects of brand credibility, a central concept in information economics-based approaches to and equity, on consumer choice set formation. We investigate mechanisms through which credibility materialize, namely perceived quality, risk costs saved. The as signal is defined believability product position contained brand, depends perceptions willingness ability firms deliver what they have promised. collection brands that non-zero probability being chosen among those actually available for given context. Furthermore, we study impact variance stochastic component utility. Choice model parameters not only capture systematic utility differences probabilities, but magnitude this moderated by relative importance preference. term moderation phenomenon "preference discrimination," conceptualize decision makers' capacity effectively discriminate between products' utilities situations. estimate discrete formation preference discrimination experimental data two categories (juice PC) find strong evidence differential credibility's materializes conditional set, discrimination.