Journal of Shanghai Jiaotong University

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Research on the State Dependence Effect of Online Consumer Based on Random Utility Model

CHEN Jie,YANG Shengrong   

  1. (Antai College of Economics and Management, Shanghai Jiaotong University, Shanghai 200052, China)
  • Received:2009-03-08 Revised:1900-01-01 Online:2010-03-30 Published:2010-03-30

Abstract: This paper built a random utility brand choice model to describe the state dependence of online consumers. Then the model was applied to analyze actual online consumer panel data. The results show that online consumers have very strong state dependence effect. This state dependence can be taken as brand loyalty and size loyalty. So online etailer should exert as much as possible the flexibility of online channels, using a variety of opportunities for consumers to access products, attracting consumers to make repeat purchase.

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