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Note—A Brand Switching Model with Implications for Marketing Strategies


  • Richard A. Colombo

    (New York University)

  • Donald G. Morrison

    (University of California, Los Angeles)


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 Some previously unpublished automobile data will be presented and analyzed along with another data set for frequently purchased packaged goods.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.

Suggested Citation

  • Richard A. Colombo & Donald G. Morrison, 1989. "Note—A Brand Switching Model with Implications for Marketing Strategies," Marketing Science, INFORMS, vol. 8(1), pages 89-99.
  • Handle: RePEc:inm:ormksc:v:8:y:1989:i:1:p:89-99

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    Cited by:

    1. 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.
    2. Nadja Silberhorn & Yasemin Boztuğ & Lutz Hildebrandt, 2017. "Does umbrella branding really work? Investigating cross-category brand loyalty," Journal of Business Economics, Springer, vol. 87(3), pages 397-420, April.
    3. Ganesh Iyer & David Soberman, 2000. "Markets for Product Modification Information," Marketing Science, INFORMS, vol. 19(3), pages 203-225, February.
    4. Christophe Van den Bulte & Raghuram Iyengar, 2011. "Tricked by Truncation: Spurious Duration Dependence and Social Contagion in Hazard Models," Marketing Science, INFORMS, vol. 30(2), pages 233-248, 03-04.
    5. Huang Rui & Perloff Jeffrey M & Villas-Boas Sofia B, 2006. "Effects of Sales on Brand Loyalty," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 4(1), pages 1-26, July.
    6. Mueller, Michel G. & de Haan, Peter, 2009. "How much do incentives affect car purchase? Agent-based microsimulation of consumer choice of new cars--Part I: Model structure, simulation of bounded rationality, and model validation," Energy Policy, Elsevier, vol. 37(3), pages 1072-1082, March.
    7. Jorge Silva-Risso & Irina Ionova, 2008. "—A Nested Logit Model of Product and Transaction-Type Choice for Planning Automakers' Pricing and Promotions," Marketing Science, INFORMS, vol. 27(4), pages 545-566, 07-08.
    8. 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.
    9. Shuba Srinivasan & Koen Pauwels & Dominique M. Hanssens & Marnik G. Dekimpe, 2004. "Do Promotions Benefit Manufacturers, Retailers, or Both?," Management Science, INFORMS, vol. 50(5), pages 617-629, May.
    10. 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.
    11. Mihai Calciu & Dan Somnea, 2008. "New Web Application Technologies for Global Decision Support in Sales and Marketing - Guidelines for Model Builders," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 11(27), pages 203-256, January.
    12. Jorge M. Silva-Risso & Randolph E. Bucklin & Donald G. Morrison, 1999. "A Decision Support System for Planning Manufacturers' Sales Promotion Calendars," Marketing Science, INFORMS, vol. 18(3), pages 274-300.
    13. 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.
    14. 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.
    15. Subramanian Balachander & Bikram Ghosh & Axel Stock, 2010. "Why Bundle Discounts Can Be a Profitable Alternative to Competing on Price Promotions," Marketing Science, INFORMS, vol. 29(4), pages 624-638, 07-08.
    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. 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.
    18. repec:eee:jbrese:v:81:y:2017:i:c:p:173-180 is not listed on IDEAS
    19. Yuxin Chen & Chakravarthi Narasimhan & Z. John Zhang, 2001. "Individual Marketing with Imperfect Targetability," Marketing Science, INFORMS, pages 23-41.

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    loyalty; conquesting; latent class models;


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