Permalink : http://hdl.handle.net/2115/73694

We analyze the brand loyalty of consumers in regard to sugar-free tea beverages in Japan using a Markov brand-switching model. Sugarfree tea beverages are highly preferred by Japanese consumers, and numerous sugar-free tea beverages and brands are available on the market. Using Markov brand-switching probabilities of household panel data of sugar-free tea beverage purchases, we find that the existing brand share remains unchanged in future periods. Our empirical results suggest that consumers' brand loyalty affects the market structure of sugar-free tea beverages in Japan