A model representing the amount of switching among the brands in a product category. The model postulates that, for directly competing brands (i.e., brands within the same market partition), the level of switching among those brands should be proportional to the product of their market shares. The exact level of switching (i.e., the proportionality constant) is assumed to be the value that maximizes the entropy (i.e., randomness or lack of information) in this probabilistic system. (The Hendry Corporation 1970, 1971; Kalwani and Morrison 1977; Rubinson, Vanhonacker, and Bass 1980.) Source: AMA
See: Brand Choice ModelsBack to previous
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