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Brand Loyalty and Marketing Strategy: An Application to Home Appliances

Author

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  • Barry L. Bayus

    (Cornell University)

Abstract

In the academic literature, the modelling of brand choice and switching behavior has a long history for frequently purchased packaged goods. Comparable efforts with consumer durable goods, however, are generally absent. This paper presents an application of the brand switching model proposed by Colombo and Morrison (1989) to a set of four major home appliances. Appliance brand loyalty, however, is shown to be a function of the timing of replacements, a factor that has not entered into the modelling of packed goods. As a result, the brand switching matrices are analyzed over the replacement cycle. This application illustrates how a brand switching analysis can be used to assess the relative competitive position of a firm in terms of the primary customer sources that a brand attracts.

Suggested Citation

  • Barry L. Bayus, 1992. "Brand Loyalty and Marketing Strategy: An Application to Home Appliances," Marketing Science, INFORMS, vol. 11(1), pages 21-38.
    • Handle: RePEc:inm:ormksc:v:11:y:1992:i:1:p:21-38
    DOI: 10.1287/mksc.11.1.21
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    Citations

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    Cited by:

    1. Gordon, Joel A. & Balta-Ozkan, Nazmiye & Nabavi, Seyed Ali, 2023. "Price promises, trust deficits and energy justice: Public perceptions of hydrogen homes," Renewable and Sustainable Energy Reviews, Elsevier, vol. 188(C).
    2. Moisescu Ovidiu Ioan, 2009. "The Influence Of Market Type And Demographics On Brand Loyalty: A Study Among Urban Romanian Consumers," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 4(1), pages 737-741, May.
    3. Heribert Gierl & Roland Helm & Stefan Stumpp, 2002. "Markentreue und Kaufintervalle bei langlebigen Konsumgütern," Schmalenbach Journal of Business Research, Springer, vol. 54(3), pages 215-232, May.
    4. Fozia Malik & Omer Malik, 2012. "Determinants of Brand Loyalty in Health Sector of Pakistan," Information Management and Business Review, AMH International, vol. 4(9), pages 477-486.
    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. Desai, Kalpesh Kaushik & Gauri, Dinesh Kumar & Ma, Yu, 2014. "An Empirical Investigation of Composite Product Choice," Journal of Retailing, Elsevier, vol. 90(4), pages 493-510.
    7. Steven Miller & Eric Bradlow & Kevin Dayaratna, 2006. "Closed-form Bayesian inferences for the logit model via polynomial expansions," Quantitative Marketing and Economics (QME), Springer, vol. 4(2), pages 173-206, June.
    8. Ovidiu Ioan Moisescu, 2009. "The Relation Between Unaided Brand Awareness And Brand Commercial Performance: A Study Among Urban Romanian Consumers," JOURNAL STUDIA UNIVERSITATIS BABES-BOLYAI NEGOTIA, Babes-Bolyai University, Faculty of Business.
    9. Andrea Pozzi, 2012. "Shopping Cost and Brand Exploration in Online Grocery," American Economic Journal: Microeconomics, American Economic Association, vol. 4(3), pages 96-120, August.
    10. Sanchez-Franco, Manuel J., 2009. "The Moderating Effects of Involvement on the Relationships Between Satisfaction, Trust and Commitment in e-Banking," Journal of Interactive Marketing, Elsevier, vol. 23(3), pages 247-258.
    11. A. Prinzie & D. Van Den Poel, 2007. "Predicting home-appliance acquisition sequences: Markov/Markov for Discrimination and survival analysis for modeling sequential information in NPTB models," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 07/442, Ghent University, Faculty of Economics and Business Administration.
    12. Thakur, Rakhi, 2016. "Understanding Customer Engagement and Loyalty: A Case of Mobile Devices for Shopping," Journal of Retailing and Consumer Services, Elsevier, vol. 32(C), pages 151-163.
    13. Silberhorn, Nadja & Hildebrandt, Lutz, 2009. "Is cross-category brand loyalty determined by risk aversion?," SFB 649 Discussion Papers 2009-061, Humboldt University Berlin, Collaborative Research Center 649: Economic Risk.

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