Discussion paper

DP11648 The Formation of Consumer Brand Preferences

Brands and brand capital have long been theorized to play an important role in the formation of the industrial market structure of consumer goods industries. We summarize several striking empirical regularities in the concentration, magnitude and persistence of brand market shares in consumer goods categories. We then survey the theoretical and empirical literatures on the formation of brand preferences and how brand preferences contribute to our understanding of these empirical regularities. We also review the literature on how brand capital creates strategic advantages to firms that own established brands.


Bronnenberg, B and J Dube (2016), ‘DP11648 The Formation of Consumer Brand Preferences‘, CEPR Discussion Paper No. 11648. CEPR Press, Paris & London. https://cepr.org/publications/dp11648