A common theme in marketing literature is the acquisition and retention of customers as they trade up from inexpensive introductory offerings to those of higher quality. We develop a nonhomothetic choice model to accommodate effects of advertising, professional recommendation, and other factors...

A common theme in the marketing literature is the acquisition and retention of customers as they trade-up from inexpensive, introductory offerings to those of higher quality. Standard models of choice, however, apply to narrowly defined categories for which assumptions of...