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Note—A Brand Switching Model with Implications for Marketing Strategies

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Author Info

  • Richard A. Colombo

    (New York University)

  • Donald G. Morrison

    (University of California, Los Angeles)

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    Abstract

    A two-class “Hard-Core Loyal” and “Potential Switcher” latent model for the analysis of brand switching data is proposed. Some previously unpublished automobile data will be presented and analyzed along with another data set for frequently purchased packaged goods. We show how our simple model can be easily estimated using a standard log-linear modeling approach. We hope that the approach, examples, and managerial implications presented will stimulate increased collection and analysis of switching data in the areas of durables and services. In fact our model may well be more appropriate for these two aspects of marketing than it is for consumer packaged goods—which up to now represents almost all of the published work using switching data.

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    File URL: http://dx.doi.org/10.1287/mksc.8.1.89
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    Bibliographic Info

    Article provided by INFORMS in its journal Marketing Science.

    Volume (Year): 8 (1989)
    Issue (Month): 1 ()
    Pages: 89-99

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    Handle: RePEc:inm:ormksc:v:8:y:1989:i:1:p:89-99

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    Related research

    Keywords: loyalty; conquesting; latent class models;

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    Cited by:
    1. ALTAF Mohsin & REHMAN Ahmad & ALI Ahmed, 2012. "Determinants Of Customer Switching Behavior In Banking Sector," Studies in Business and Economics, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 7(2), pages 20-34, August.
    2. Nadja Silberhorn & Lutz Hildebrandt, 2012. "Does umbrella branding really work? Investigating cross-category brand loyalty," SFB 649 Discussion Papers SFB649DP2012-028, Sonderforschungsbereich 649, Humboldt University, Berlin, Germany.
    3. Huang, Rui & Perloff, Jeffrey M & Villas-Boas, Sofia B, 2006. "Effect of Sales on Brand Loyalty," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt2qc1p7g9, Department of Agricultural & Resource Economics, UC Berkeley.
    4. Sergio Brasini & Marzia Freo & Giorgio Tassinari, 2005. "The effects of marketing activities on fast moving consumer good purchases : the case of yoghurt Italian market," Quaderni di Dipartimento 2, Department of Statistics, University of Bologna.
    5. Yim, Chi Kin & Kannan, P. K., 1999. "Consumer Behavioral Loyalty:: A Segmentation Model and Analysis," Journal of Business Research, Elsevier, vol. 44(2), pages 75-92, February.
    6. Jackson, Tyrone W. & Perloff, Jeffrey M, 1996. "Personal computer brand loyalty," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt3w5958mx, Department of Agricultural & Resource Economics, UC Berkeley.
    7. 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.

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