IDEAS home Printed from https://ideas.repec.org/a/eee/joreco/v46y2019icp121-129.html
   My bibliography  Save this article

Exploring the incidence and antecedents of buying an FMCG brand and UPC for the first time

Author

Listed:
  • Bogomolova, Svetlana
  • Anesbury, Zachary
  • Lockshin, Larry
  • Kapulski, Natasha
  • Bogomolov, Tim

Abstract

Two studies provide estimates of the upper range of incidence of first-time (brand and UPC) purchases, claimed reasons for these new purchases, and consumer profiles of first-time brand buyers. Study 1 analyzes three years of transaction data from 10,000 loyalty card members; Study 2 reports on 510 mall-intercept interviews in two different stores. Despite the vast range of items available in modern supermarkets, new brand purchasing is not particularly common: new brands constitute about 5% of items in a basket and are purchased on about 1/3 of shopping trips. The majority of these new-to-consumer purchases have been prompted by in-store stimuli (noticing new brands, price promotions and stock-outs). Interestingly, demographic characteristics between first-time and existing buyers did not differ. Providing further evidence to the habitual nature of grocery shopping, the results indicate limited opportunities to expand/change consumer repertoires suggesting the need for ongoing marketing activities for FMCGs.

Suggested Citation

  • Bogomolova, Svetlana & Anesbury, Zachary & Lockshin, Larry & Kapulski, Natasha & Bogomolov, Tim, 2019. "Exploring the incidence and antecedents of buying an FMCG brand and UPC for the first time," Journal of Retailing and Consumer Services, Elsevier, vol. 46(C), pages 121-129.
    • Handle: RePEc:eee:joreco:v:46:y:2019:i:c:p:121-129
    DOI: 10.1016/j.jretconser.2017.05.010
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0969698917301583
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jretconser.2017.05.010?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Gilles Laurent & Raphaelle Lambert-Pandraud & Eric Lapersonne, 2005. "Repeat Purchasing of New Automobiles by Older Consumers: Empirical Evidence and Interpretations," Post-Print hal-00458431, HAL.
    2. Kapil Bawa & Robert Shoemaker, 2004. "The Effects of Free Sample Promotions on Incremental Brand Sales," Marketing Science, INFORMS, vol. 23(3), pages 345-363, November.
    3. Trinh, Giang & Lam, Desmond, 2016. "Understanding the attendance at cultural venues and events with stochastic preference models," Journal of Business Research, Elsevier, vol. 69(9), pages 3538-3544.
    4. van Bruggen, Gerrit H. & Wierenga, Berend, 2010. "Marketing Decision Making and Decision Support: Challenges and Perspectives for Successful Marketing Management Support Systems," Foundations and Trends(R) in Marketing, now publishers, vol. 4(4), pages 209-332, July.
    5. Winchester, Maxwell & Lees, Gavin, 2013. "Do radio stations in New Zealand target successfully?," Australasian marketing journal, Elsevier, vol. 21(1), pages 52-58.
    6. Marc Vanhuele & Malcolm Wright & Robert East, 2008. "Consumer Behaviour: Applications in Marketing," Post-Print hal-02454375, HAL.
    7. Mark Uncles & Andrew Ehrenberg & Kathy Hammond, 1995. "Patterns of Buyer Behavior: Regularities, Models, and Extensions," Marketing Science, INFORMS, vol. 14(3_supplem), pages 71-78.
    8. Venkatesh, Viswanath & Morris, Michael G. & Ackerman, Phillip L., 2000. "A Longitudinal Field Investigation of Gender Differences in Individual Technology Adoption Decision-Making Processes," Organizational Behavior and Human Decision Processes, Elsevier, vol. 83(1), pages 33-60, September.
    9. A. S. C. Ehrenberg, 1959. "The Pattern of Consumer Purchases," Journal of the Royal Statistical Society Series C, Royal Statistical Society, vol. 8(1), pages 26-41, March.
    10. Calder, Bobby J & Phillips, Lynn W & Tybout, Alice M, 1982. "The Concept of External Validity," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 9(3), pages 240-244, December.
    11. Steenkamp, Jan-Benedict E M & Gielens, Katrijn, 2003. "Consumer and Market Drivers of the Trial Probability of New Consumer Packaged Goods," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 30(3), pages 368-384, December.
    12. Uncles, Mark D. & Ehrenberg, Andrew S. C. & Goodhardt, Gerald J., 2004. "Reply to commentary on "Understanding brand performance measures: using Dirichlet benchmarks"," Journal of Business Research, Elsevier, vol. 57(12), pages 1329-1330, December.
    13. East, Robert & Hammond, Kathy & Lomax, Wendy, 2008. "Measuring the impact of positive and negative word of mouth on brand purchase probability," International Journal of Research in Marketing, Elsevier, vol. 25(3), pages 215-224.
    14. Randolph E. Bucklin & James M. Lattin, 1991. "A Two-State Model of Purchase Incidence and Brand Choice," Marketing Science, INFORMS, vol. 10(1), pages 24-39.
    15. Peter S. Fader & Bruce G. S. Hardie & Ka Lok Lee, 2005. "“Counting Your Customers” the Easy Way: An Alternative to the Pareto/NBD Model," Marketing Science, INFORMS, vol. 24(2), pages 275-284, August.
    16. Rook, Dennis W, 1987. "The Buying Impulse," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 14(2), pages 189-199, September.
    17. Peter S. Fader & Bruce G. S. Hardie & Chun-Yao Huang, 2004. "A Dynamic Changepoint Model for New Product Sales Forecasting," Marketing Science, INFORMS, vol. 23(1), pages 50-65, October.
    18. Frank M. Bass & Moshe M. Givon & Manohar U. Kalwani & David Reibstein & Gordon P. Wright, 1984. "An Investigation into the Order of the Brand Choice Process," Marketing Science, INFORMS, vol. 3(4), pages 267-287.
    19. Powell, Melanie & Ansic, David, 1997. "Gender differences in risk behaviour in financial decision-making: An experimental analysis," Journal of Economic Psychology, Elsevier, vol. 18(6), pages 605-628, November.
    20. Bruce G. S. Hardie & Peter S. Fader & Robert Zeithammer, 2003. "Forecasting new product trial in a controlled test market environment," Journal of Forecasting, John Wiley & Sons, Ltd., vol. 22(5), pages 391-410.
    21. Bogomolova, Svetlana & Romaniuk, Jenni, 2009. "Brand defection in a business-to-business financial service," Journal of Business Research, Elsevier, vol. 62(3), pages 291-296, March.
    22. Uncles, Mark D. & Kwok, Simon, 2009. "Patterns of store patronage in urban China," Journal of Business Research, Elsevier, vol. 62(1), pages 68-81, January.
    23. Bogomolova, Svetlana, 2010. "Life after death? Analyzing post-defection consumer brand equity," Journal of Business Research, Elsevier, vol. 63(11), pages 1135-1141, November.
    24. Desmond Lam & Richard Mizerski, 2009. "An investigation into gambling purchases using the NBD and NBD–Dirichlet models," Marketing Letters, Springer, vol. 20(3), pages 263-276, September.
    25. Ehrenberg, Andrew S. C. & Uncles, Mark D. & Goodhardt, Gerald J., 2004. "Understanding brand performance measures: using Dirichlet benchmarks," Journal of Business Research, Elsevier, vol. 57(12), pages 1307-1325, December.
    26. Schmidt, Marcus, 2012. "Retail shopping lists: Reassessment and new insights," Journal of Retailing and Consumer Services, Elsevier, vol. 19(1), pages 36-44.
    27. Riebe, Erica & Wright, Malcolm & Stern, Philip & Sharp, Byron, 2014. "How to grow a brand: Retain or acquire customers?," Journal of Business Research, Elsevier, vol. 67(5), pages 990-997.
    28. John Dawes & Bryon Sharp & Malcom Wrigth & Carl Driesener & Lars Meyer-Waarden & Lara Stocchi & Philip Stern, 2012. "It's a Dirichlet World: Modeling Individuals' Loyalties Reveals How Brands Compete, Grow, and Decline," Post-Print halshs-00862211, HAL.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kwon, Ohjin & Singh, Tanya & Kim, SunAh, 2023. "The competing roles of variety seeking in new brand adoption," Journal of Retailing and Consumer Services, Elsevier, vol. 72(C).
    2. Suraj Verma & Kuldeep Chand Rojhe & Elena Horská & Somesh Sharma & Peter Šedík, 2023. "Consumer Decision-Making Rules for FMCG Products—Study of Rural in North India," Economies, MDPI, vol. 11(1), pages 1-13, January.
    3. Hoskins, Jake D., 2020. "The evolving role of hit and niche products in brick-and-mortar retail category assortment planning: A large-scale empirical investigation of U.S. consumer packaged goods," Journal of Retailing and Consumer Services, Elsevier, vol. 57(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Trinh, Giang & Lam, Desmond, 2016. "Understanding the attendance at cultural venues and events with stochastic preference models," Journal of Business Research, Elsevier, vol. 69(9), pages 3538-3544.
    2. Trinh, Giang & Corsi, Armando & Lockshin, Larry, 2019. "How country of origins of food products compete and grow," Journal of Retailing and Consumer Services, Elsevier, vol. 49(C), pages 231-241.
    3. Anesbury, Zachary William & Talbot, Danielle & Day, Chanel Andrea & Bogomolov, Tim & Bogomolova, Svetlana, 2020. "The fallacy of the heavy buyer: Exploring purchasing frequencies of fresh fruit and vegetable categories," Journal of Retailing and Consumer Services, Elsevier, vol. 53(C).
    4. Koll, Oliver & Plank, Andreas, 2022. "Do shoppers choose the same brand on the next trip when facing the same context? An empirical investigation in FMCG retailing," Journal of Retailing, Elsevier, vol. 98(4), pages 576-592.
    5. Trinh, Giang & Khan, Huda & Lockshin, Larry, 2020. "Purchasing behaviour of ethnicities: Are they different?," International Business Review, Elsevier, vol. 29(4).
    6. Mecredy, Philip & Wright, Malcolm J. & Feetham, Pamela, 2018. "Are promoters valuable customers? An application of the net promoter scale to predict future customer spend," Australasian marketing journal, Elsevier, vol. 26(1), pages 3-9.
    7. Habel, Cullen & Lockshin, Larry, 2013. "Realizing the value of extensive replication: A theoretically robust portrayal of double jeopardy," Journal of Business Research, Elsevier, vol. 66(9), pages 1448-1456.
    8. Zachary Anesbury & Maxwell Winchester & Rachel Kennedy, 2017. "Brand user profiles seldom change and seldom differ," Marketing Letters, Springer, vol. 28(4), pages 523-535, December.
    9. Romaniuk, Jenni, 2013. "Modeling mental market share," Journal of Business Research, Elsevier, vol. 66(2), pages 188-195.
    10. Trinh, Giang & Wright, Malcolm J., 2022. "Predicting future consumer purchases in grocery retailing with the condensed Poisson lognormal model," Journal of Retailing and Consumer Services, Elsevier, vol. 64(C).
    11. Dawes, John, 2020. "The Natural Monopoly effect in brand purchasing: Do big brands really appeal to lighter category buyers?," Australasian marketing journal, Elsevier, vol. 28(2), pages 90-99.
    12. Trinh, Giang & Dawes, John, 2020. "A comparison of brand loyalty between on the go and take-home consumption purchases," Journal of Retailing and Consumer Services, Elsevier, vol. 53(C).
    13. Mizerski, Richard & Mizerski, Katherine & Lam, Desmond & Lee, Alvin, 2013. "Gamblers' habit," Journal of Business Research, Elsevier, vol. 66(9), pages 1605-1611.
    14. Giang Trinh & Jenni Romaniuk & Arry Tanusondjaja, 2016. "Benchmarking buyer behavior towards new brands," Marketing Letters, Springer, vol. 27(4), pages 743-752, December.
    15. Trinh, Giang, 2014. "Predicting variation in repertoire size with the NBD model," Australasian marketing journal, Elsevier, vol. 22(2), pages 111-116.
    16. Baker, Bradley J. & McDonald, Heath & Funk, Daniel C., 2016. "The uniqueness of sport: Testing against marketing's empirical laws," Sport Management Review, Elsevier, vol. 19(4), pages 378-390.
    17. Teck-Hua Ho & Young-Hoon Park & Yong-Pin Zhou, 2006. "Incorporating Satisfaction into Customer Value Analysis: Optimal Investment in Lifetime Value," Marketing Science, INFORMS, vol. 25(3), pages 260-277, 05-06.
    18. Zhiqiang (Eric) Zheng & Peter Fader & Balaji Padmanabhan, 2012. "From Business Intelligence to Competitive Intelligence: Inferring Competitive Measures Using Augmented Site-Centric Data," Information Systems Research, INFORMS, vol. 23(3-part-1), pages 698-720, September.
    19. Uncles, Mark D. & East, Robert & Lomax, Wendy, 2010. "Market share is correlated with word-of-mouth volume," Australasian marketing journal, Elsevier, vol. 18(3), pages 145-150.
    20. Giang Trinh & Cam Rungie & Malcolm Wright & Carl Driesener & John Dawes, 2014. "Predicting future purchases with the Poisson log-normal model," Marketing Letters, Springer, vol. 25(2), pages 219-234, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:joreco:v:46:y:2019:i:c:p:121-129. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/journal-of-retailing-and-consumer-services .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.