IDEAS home Printed from https://ideas.repec.org/a/eee/transb/v28y1994i6p445-462.html
   My bibliography  Save this article

Structural models of brand loyalty with an application to the automobile market

Author

Listed:
  • Chandrasekharan, Radha
  • McCarthy, Patrick S.
  • Wright, Gordon P.

Abstract

Although several studies have found that past purchases are important determinants of a consumer's current purchase, there is disagreement whether past purchases are capturing brand loyalty or consumer heterogeneity. This article addresses the question of consumer heterogeneity, explores the relationship between brand loyalty and singleton choice sets and estimates alternative structural models that are based on the common assumption that consumers are of two types: brand loyals and shoppers, who face the entire set of available choices. Employing data from a 1989 J. D. Power and Associates survey of new vehicle buyers, aggregate switching and logit captivity/DOGIT models are estimated and comparatively evaluated in holdout testing. Among the results, there is evidence that new vehicle purchasers are brand loyal but that brand loyalty may be overestimated if the model fails to control for availability constraints. Further, a parametrized logit captivity model finds that male and college-educated consumers are important determinants of singleton choice sets.

Suggested Citation

  • Chandrasekharan, Radha & McCarthy, Patrick S. & Wright, Gordon P., 1994. "Structural models of brand loyalty with an application to the automobile market," Transportation Research Part B: Methodological, Elsevier, vol. 28(6), pages 445-462, December.
  • Handle: RePEc:eee:transb:v:28:y:1994:i:6:p:445-462
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/0191-2615(94)90014-0
    Download Restriction: Full text for ScienceDirect subscribers only

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

    More about this item

    Statistics

    Access and download statistics

    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:transb:v:28:y:1994:i:6:p:445-462. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/548/description#description .

    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.

    We have no references for this item. You can help adding them by using 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.