Quantifying brand loyalty: Evidence from the cigarette market.

Quantifying brand loyalty: Evidence from the cigarette market.
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DOI:
10.1016/j.jhealeco.2021.102512
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发表时间:
2021-09
影响因子:
3.5
通讯作者:
Somerville J
Somerville J
中科院分区:
经济学2区
文献类型:
--
作者:
DeCicca P;Kenkel D;Liu F;Somerville J

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We exploit a quasi-experiment created when New York State began in 2011 to tax cigarettes sold on Native American Reservations. The regime change represents a unique opportunity to quantify brand loyalty because it almost doubled the price of premium-brand cigarettes, while Native brands were still untaxed. We use data from two different sources—the New York State Adult Tobacco Survey and the Nielsen Homescan Panel. We find that the increase in relative prices led to substantial declines in premium cigarette purchases. However, even among the premium consumers with the most to gain from switching, about three-quarters remained brand loyal.
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