The Evolution of Brand Preferences: Evidence from Consumer Migration

Bronnenberg, Bart J.; Dubé, Jean-Pierre; Gentzkow, Matthew

doi:10.1257/aer.102.6.2472

Cited by 272 publications

(183 citation statements)

References 33 publications

(36 reference statements)

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“…Brands are one of critical factors determining consumers' choices (Bronnenberg, Dube and Gentzkow, 2012). Due to asymmetric information, consumers regard brands as an assurance of product quality.…”

Section: Spillover Effects Of Global Value Chainsmentioning

confidence: 99%

Global Value Chains and China's Exports to High-income Countries

Xing

2016

International Economic Journal

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This paper argues that global value chains (GVCs) have functioned as a vehicle for "Made in China" products to enter international markets, especially the markets of high income countries. It identifies three spillover effects to Chinese firms participating in GVCs: brands, distribution networks and lead firms' technology innovations. By participating in GVCs, Chinese firms are able to bundle low skilled labor services with advanced technologies and globally recognized brands, and then sell their low value added services to the consumers of international markets. The competitiveness of China's processing exports is largely determined by more than 50% of foreign contents embedded in the exports. Using the panel data of bilateral processing exports covering more than 100 China's trade partners, it shows there exists a significantly positive correlation between the share of processing exports and the income of trading partners, implying that processing trade is an effective means for "Made in China" products to enter high income countries. The cross-country heterogeneity of processing exports also indicates China captures relatively more value added in its exports to low income countries than to high income countries.

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Section: Spillover Effects Of Global Value Chainsmentioning

confidence: 99%

Global Value Chains and China's Exports to High-income Countries

Xing

2016

International Economic Journal

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“…Recently, some more clear evidence of the relevance of the transplanted home-bias effect has been provided by Bronnenberg et al (2012), Atkin (2010) and Mazzolari and Neumark (2012). Bronnenberg et al (2012) looking at the consumption behavior of U.S. consumers migrating across state borders, find that in choosing between the two top brands in a category of a very specific product, past experiences are an important driver of current consumption.…”

Section: Regional Levelmentioning

confidence: 99%

“…Bronnenberg et al (2012) looking at the consumption behavior of U.S. consumers migrating across state borders, find that in choosing between the two top brands in a category of a very specific product, past experiences are an important driver of current consumption. Consumers migrating from a certain U.S. state tend to partially adapt to local habits to a certain extent, but in spite of the difference in price and in brand availability, they still tend to persist in consuming according to the prevalent choices in the U.S. state they migrated from.…”

Section: Regional Levelmentioning

confidence: 99%

On the pro-trade effects of immigrants

2014

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In this paper we investigate the causal effect of immigration on trade flows using Italian panel data at the province level. We exploit the exceptional characteristics of the Italian data (the fine geographical disaggregation, the very high number of countries of origin of immigrants, the high heterogeneity of social and economic characteristics of Italian provinces, and the absence of cultural or historical ties) and an empirical strategy based on the comparison of estimates at the NUTS-2 and NUTS-3 geographical level, on the use of a wide set of fixed effects, and on instrument based on immigrants' enclaves. The results are that immigrants have a significant positive effect on both exports and imports, much larger for the latter. The pro-trade effects of immigrants tend to decline in space, and even turn negative when large ethnic communities are located too far away from a specific province (via a trade-diversion effect). Finally, we give evidence of a substantial heterogeneity in the effects of immigrants: the impact on trade tends to be larger for immigrants coming from low-income countries, for earlier waves of immigrants and for the less advanced provinces of Southern Italy. AbstractIn this paper we investigate the causal effect of immigration on trade flows using Italian panel data at the province level. We exploit the exceptional characteristics of the Italian data (the fine geographical disaggregation, the very high number of countries of origin of immigrants, the high heterogeneity of social and economic characteristics of Italian provinces, and the absence of cultural or historical ties) and an empirical strategy based on the comparison of estimates at the NUTS-2 and NUTS-3 geographical level, on the use of a wide set of fixed effects, and on instrument based on immigrants' enclaves. The results are that immigrants have a significant positive effect on both exports and imports, much larger for the latter. The pro-trade effects of immigrants tend to decline in space, and even turn negative when large ethnic communities are located too far away from a specific province (via a trade-diversion effect). Finally, we give evidence of a substantial heterogeneity in the effects of immigrants: the impact on trade tends to be larger for immigrants coming from low-income countries, for earlier waves of immigrants and for the less advanced provinces of Southern Italy. JEL Classification

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“…22 Stigler and Becker (1977) provide an influential formalization of preferences with such "consumption capital." Bronnenberg et al (2012) use the migration history of households and consumer scan data on a large number of packaged goods categories to establish that some 40% of geographic variation in market shares across the United States can be attributed to persistent preferences. 23 Friberg and Grönqvist (2012) use weekly data; the effect peaks in the week after the review and gradually diminishes to an accumulated effect of a favorable review that is equivalent to 4,418 liters in (Friberg and Grönqvist 2012 only examine the T1 and Base modules) the total effect of a favorable review can thus be calculated as 4,418/(8,218 × 16 weeks).…”

Section: Endnotesmentioning

confidence: 99%

The Effect of Retail Distribution on Sales of Alcoholic Beverages

Friberg¹,

Sanctuary²

2017

Marketing Science

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Abstract. We use monthly sales of all wines, beer, and spirits sold between 2006 and 2011 by Sweden's retail monopoly on alcohol to estimate the causal effect of retail distribution on market share by volume at the product level. Products are defined at the level of the stock-keeping unit. Two institutional features are key to identifying the causal effect: First, the monopolist uses four levels of retail distribution; a change in retail distribution is therefore associated with a discrete shift in the number of stores that carry a product in a given month. Second, the retailer is legally bound and monitored by the European Union to ensure that it acts in a non-discriminatory manner with all its suppliers. These features allow us to rule out many possible confounding factors in estimating the effect of distribution on sales volume. We find large and statistically significant effects from changes in retail distribution on market share by volume across all levels of retail distribution. The associated volume elasticity of retail distribution is convex; the wider the retail distribution the greater the marginal volume increase from further widening. In this market, wider distribution means reaching stores with successively smaller assortment. Our results indicate that the smaller assortment in smaller stores, coupled with a low resistance to compromise, is the main reason for the convex pattern. In other words, convexity appears to be generated by products achieving "a larger share of a smaller pie" as retail distribution expands.

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The Evolution of Brand Preferences: Evidence from Consumer Migration

Cited by 272 publications

References 33 publications

Global Value Chains and China's Exports to High-income Countries

Global Value Chains and China's Exports to High-income Countries

On the pro-trade effects of immigrants

The Effect of Retail Distribution on Sales of Alcoholic Beverages

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