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Brand loyalty among Norwegian car owners

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  • Jørgensen, Finn
  • Mathisen, Terje Andreas
  • Pedersen, Hassa

Abstract

Obtaining brand-loyal customers has been demonstrated to be vital for profitability and survival of firms. Loyal customers generally have a higher willingness-to-pay and lower price sensitivity compared to other customers. In this article, we study brand loyalty among car owners using empirical data on 35,000 car changes in Norway from 1985 to 2013. In contrast to earlier studies on loyalty within this industry that aimed at revealing the attitudes of customers, our data discuss the actual behaviour. As a supplement to our behaviour data set, we use satisfaction measures produced by Autoindex. Average loyalty, as measured by the consecutive purchase of the same brand, amounts to 26.4%. By including returning customers and measuring the repurchase of the same brand as one of the customer's three previous cars, the average loyalty increases to 36.7%. In general, the most prevalent brands attract the most loyal customers. A logit model is applied to describe the factors that have the strongest influence on brand loyalty. The information obtained by this study is of interest to several parts of the automotive industry value chain. Moreover, the analysis is relevant for researchers conducting attitudinal studies on loyalty and satisfaction by comparing this information to the actual behaviour of customers.

Suggested Citation

  • Jørgensen, Finn & Mathisen, Terje Andreas & Pedersen, Hassa, 2016. "Brand loyalty among Norwegian car owners," Journal of Retailing and Consumer Services, Elsevier, vol. 31(C), pages 256-264.
    • Handle: RePEc:eee:joreco:v:31:y:2016:i:c:p:256-264
    DOI: 10.1016/j.jretconser.2016.04.001
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    References listed on IDEAS

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    1. Odin, Yorick & Odin, Nathalie & Valette-Florence, Pierre, 2001. "Conceptual and operational aspects of brand loyalty: an empirical investigation," Journal of Business Research, Elsevier, vol. 53(2), pages 75-84, August.
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    3. Valentyna Melnyk & Stijn Osselaer, 2012. "Make me special: Gender differences in consumers’ responses to loyalty programs," Marketing Letters, Springer, vol. 23(3), pages 545-559, September.
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    Cited by:

    1. Saiful Hasan & Terje Andreas Mathisen, 2020. "Policy measures for electric vehicle adoption. A review of evidence from Norway and China," ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT, FrancoAngeli Editore, vol. 0(1), pages 25-46.
    2. Azeem, Muhammad Masood & Baker, Derek & Villano, Renato A. & Mounter, Stuart & Griffith, Garry, 2018. "Food shoppers’ share of wallet: A small city case in a changing competitive environment," Journal of Retailing and Consumer Services, Elsevier, vol. 43(C), pages 119-130.
    3. Jacqueline Siwale & Victor Chikampa & Nelson .C. Kabanda & Lungowe Chindele & Mary.S.Lubinda, 2023. "The Relationship Between Brand Experience, Brand Satisfaction and Brand Loyalty. An Empirical Study of Imported Second Hand Vehicle Buyers In Zambia," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(3), pages 44-61, March.
    4. Azeem, Muhammad Masood & Baker, Derek & Villano, Renato A. & Mounter, Stuart & Griffith, Garry, 2019. "Response to stockout in grocery stores: A small city case in a changing competitive environment," Journal of Retailing and Consumer Services, Elsevier, vol. 49(C), pages 242-252.
    5. Takumi Kato & Nobu Takenaka & Rie Ito & Kazuki Nishiguchi, 2023. "Selection versus scale: Loyalty indices for brand management," Journal of Marketing Analytics, Palgrave Macmillan, vol. 11(4), pages 836-853, December.

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