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Turning Household Panel Data on Store Switching into a Decision Aid for Customer Acquisition and Retention Strategies

Author

Listed:
  • Marc Vanhuele

    (GREGH - Groupement de Recherche et d'Etudes en Gestion à HEC - HEC Paris - Ecole des Hautes Etudes Commerciales - CNRS - Centre National de la Recherche Scientifique)

  • X. Drèze
  • Christine Balagué

Abstract

Store switching is of major concern to retailers. In reaction, they heavily rely on sales promotions and therefore, indirectly, make manufacturers pay part of the price of store switching. Different consumers switch stores for different reasons. A more sophisticated understanding of these differences permits the development of marketing strategies to address store switching. Based on representative household panel data, our approach proposes segmenting households built on a combination of cluster analysis and managerial interpretation. Central to our approach is the development of a store-by-format share profile for each household. This profile is linked to switching patterns across stores for different types of shopping baskets.

Suggested Citation

  • Marc Vanhuele & X. Drèze & Christine Balagué, 2002. "Turning Household Panel Data on Store Switching into a Decision Aid for Customer Acquisition and Retention Strategies," Post-Print hal-00457601, HAL.
    • Handle: RePEc:hal:journl:hal-00457601
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    Keywords

    retail management;

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