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Abstract
Given the large number of choices that consumers make each day it seems likely that they will
generally adopt decision strategies that minimize cognitive effort, particularly with low price
products such as most items found in a supermarket. One such strategy may be to simply
choose what has been chosen in the past, i.e. to fall into a pattern of routine choices or
decisions. In contrast, there may be preferences for variety in markets for low price, highly
differentiated goods. We develop a conceptual and empirical model of routine choice, and the
factors that result in transitions to two strategies other than routine selection, to wit, utility
maximizing choice among available alternatives and a variety seeking strategy. The empirical
approach we employ provides a mechanism for the examination of panel data that avoids the
state dependence issues present in most applications to these types of data. We apply this
framework to the choice of two food products that illustrate the heterogeneity across types of
products in decision strategies and routine choice patterns.