Lunch seminar Bart Bronnenberg

09/18/2019

12:00 - 13:00

HG-5A36

Consumer Misinformation and the Brand Premium: A Private Label Blind Taste Test

Prof. Bart Bronnenberg (Tilburg University).

Amsterdam Business Research Institute

Business and Organisation

Conference / Symposium / Seminar

ABRI and the Marketing department would like to invite you to an ABRI lunch seminar given by Professor Bart Bronnenberg (Tilburg University). Professor Bart is an amazing modeler, mentor, and presenter. Just to give an overview, his current work focuses on (1) convenience and retailing, (2) branding and entry barriers, and (3) consumer search behavior and online product search. https://www.tilburguniversity.edu/staff/bart-bronnenberg
The lunch seminar will take place on Wednesday, September 18, from 12:00 – 13:00 in room HG-5A36.
Please send an e-mail to Mariana Stori (m.t.stori@vu.nl), latest on Friday, September 13.


Abstract
To study consumer brand misinformation, we run in-store blind taste tests with a retailer’s private label food brands and the leading national brand counterparts in three large CPG categories. Subjects self-report very high expectations about the quality of the private labels relative to national brands. However, they predict a relatively low probability of choosing them in a blind taste test. An overwhelming majority systematically chooses the private label in the blinded test. Using program evaluation methods, we find that the causal effect of this intervention on treated consumers increases their market share for the tested private label product by 15 share points during the week after the intervention, on top of a base share of 8 share points. However, the effect diminishes to 8 share points during the second to fourth week after the test and to 2 share points during the second to fifth month after the test. Using a structural model of demand that controls for the self-selected participation and allows for heterogeneous treatment effects, we show these effects survive controls for point-of-purchase prices, purchase incidence, and the feedback effects of brand loyalty. We also find that the intervention increases the preference for the private label brands, and that it decreases the preference for the national brands, relative to the outside good. Interpreting the intervention as an information treatment about the product, we find evidence consistent with an economically large informational barrier on demand for the private label product relative to an established national brand.
keywords: private label, consumer information, brands and branding, market structure, self-selection

Biography
Bart Bronnenberg is a Professor of Marketing at the Tilburg School of Economics and Management. He is also a research fellow of the Centre for Economic Policy Research (CEPR) in London. He holds Ph.D. and M.Sc. degrees in management from INSEAD, Fontainebleau, France, and an M.Sc. degree in industrial engineering from Twente University, the Netherlands. Bart Bronnenberg previously held appointments at the University of Texas in Austin (1994-1998), the University of California, Los Angeles (1998-2007), Tilburg University (2007-2017) and Stanford University (2017-2018, currently on unpaid leave).
Bart Bronnenberg’s current research covers (1) convenience and retailing, (2) branding and entry barriers, and (3) consumer search behavior and online product search. His publications on these topics have appeared in leading academic journals in business and economics.