nep-mkt New Economics Papers
on Marketing
Issue of 2005‒10‒08
two papers chosen by
Joao Carlos Correia Leitao
Universidade da Beira Interior

  1. Influence of Brand Name in Variety Seeking Behavior of Consumers: An Empirical Analysis By Rajagopal
  2. Neural correlates of the affect heuristic during brand choice By Hilke Plassmann; Peter Kenning; Michael Deppe; Harald Kugel; Wolfram Schwindt

  1. By: Rajagopal (Monterrey Institute of Technology & Higher Education ITESM , Mexico City)
    Abstract: The variety-seeking behavior and the brand choice among the consumers have been discussed extensively in the previous research contributions from the stochastic point of view. This study argues that although consumers are seeking novelty and unexpectedness in a brand that they have not bought before, their purchase will be selective, in reference to the empirical investigation. The study has been conducted in Mexican retail business environment with a focus to explore the tendency of decision making of consumers towards buying unfamiliar brands in considering the importance of brand name. The discussions in the paper have been woven around the issues of perceived risk, perceived brand difference, association of brand name and customer values as major influencing factors in making buying decisions towards unfamiliar brands. The study reveals that the perceptions on brand name in reference to brand risk and brand differences have been the prime factors in making buying decision for new brands among the consumers. Consumers also ascertain the brand name associated with the unfamiliar brands as they feel high risk averse and entangle in decision making with perceived brand differences.
    Keywords: Cognitive behavior, personality traits, brand loyalty, brand perceptions, decision making, customer value
    JEL: D11 D12 D81 M20 M31
    Date: 2005–10–04
  2. By: Hilke Plassmann (Stanford NeuroEconomics Lab, Stanford University); Peter Kenning (Department of General Management,); Michael Deppe (Department of Neurology, University of Muenster); Harald Kugel (Department of Radiology, University of Muenster); Wolfram Schwindt (Department of Radiology, University of Muenster)
    Abstract: In this working paper it is investigated how affect and cognition interact in consumer decision making. The research framework is multidisciplinary by applying a neuroscientific method to answer the question which information is processed during brand choice immediately when the decision is computed in the test person’s brain. In a neuroscientific experiment test persons perform binary decision-making tasks between different brands of the same product class. The results suggest that the presence of the respondent’s first choice brand leads to a specific modulation of the neural brain activity, which can be described as neural correlate of Slovic’s affect heuristic concept.
    Keywords: Neuroeconomics, brand choice, cognition, affect
    JEL: C9
    Date: 2005–09–29

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