Date of this Version
Ehrenberg's sweeping criticism of Markov brand switching models  highlights many shortcomings of these models for aggregate analysis of consumer behavior. While it has been pointed out that some of his criticisms are not entirely correct , one of Ehrenberg's themes is unquestionably valid. The models tend to break down empirically due to violations of important Markovian stability assumptions . A situation in which the assumptions of the model appear less restrictive is short-run forecasting of store choice behavior of individual families.
Date Posted: 15 June 2007
This document has been peer reviewed.