Multiproduct firms, information, and loyalty

We empirically examine the role of brands as aggregators of information. Using a dynamic, discrete choice model of viewing behavior in the television industry, we find that brand attributes are more important than the underlying product attributes in affecting viewing choices. The brand effect islower for shows for which viewers are likely to have more information, and there is substantial heterogeneity across viewer groups in their reliance on "brand information". More than 35% of the individual-brand match that has been interpreted as individuals' "emotional attachment" to brands can be explained by viewers having incomplete information on show attributes.