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Brand loyalty evolution and the impact of category characteristics

Author

Listed:
  • Gauthier Casteran
  • Polymeros Chrysochou
  • Lars Meyer-Waarden

    (TSM - Toulouse School of Management Research - UT Capitole - Université Toulouse Capitole - UT - Université de Toulouse - CNRS - Centre National de la Recherche Scientifique - TSM - Toulouse School of Management - UT Capitole - Université Toulouse Capitole - UT - Université de Toulouse)

Abstract

A common managerial belief indicates that brand loyalty declines over the years, with consumers becoming more heterogeneous in their choices. The earlier research investigating the phenomenon of brand loyalty decline is, however, inconclusive and does not offer an answer to the reasons behind brand loyalty evolution. In this study, we investigate brand loyalty evolution and explore the impact that a number of category characteristics have on driving brand loyalty evolution. We use Danish panel data across 54 categories over a period of 6 years (2006–2011). Our findings show that at the aggregate level, brand loyalty declines, but this evolution is category-specific, with only a small number of categories showing a significant decline. We further demonstrate that an increase in category penetration results in a negative impact on brand loyalty evolution, whereas an increase in the share of private label brands has a positive impact. We discuss the implications for theory and practice.

Suggested Citation

  • Gauthier Casteran & Polymeros Chrysochou & Lars Meyer-Waarden, 2019. "Brand loyalty evolution and the impact of category characteristics," Post-Print hal-02281537, HAL.
    • Handle: RePEc:hal:journl:hal-02281537
    DOI: 10.1007/s11002-019-09484-w
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    Citations

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    Cited by:

    1. Jana Majerova & Wlodzimierz Sroka & Anna Krizanova & Lubica Gajanova & George Lazaroiu & Margareta Nadanyiova, 2020. "Sustainable Brand Management of Alimentary Goods," Sustainability, MDPI, vol. 12(2), pages 1-18, January.
    2. Irina V. Burlakova & Dmitry A. Karkh & Lyudmila S. Ruzhanskaya, 2019. "Applying category management in procurement in manufacturing companies," Upravlenets, Ural State University of Economics, vol. 10(6), pages 54-66, December.
    3. Wu, Lifang & Yang, Wei & Wu, Jessica, 2021. "Private label management: A literature review," Journal of Business Research, Elsevier, vol. 125(C), pages 368-384.
    4. Dugar, Anurag & Chamola, Pankaj, 2021. "Retailers with traits of consumer: Exploring the existence and antecedents of brand loyalty in small unorganized retailers," Journal of Retailing and Consumer Services, Elsevier, vol. 62(C).
    5. Wong Foong Yee & Siew Imm Ng & Kaixin Seng & Xin-Jean Lim & Thanuja Rathakrishnan, 2022. "How does social media marketing enhance brand loyalty? Identifying mediators relevant to the cinema context," Journal of Marketing Analytics, Palgrave Macmillan, vol. 10(2), pages 114-130, June.
    6. Nihan TOMRİS KÜÇÜN & Emel GÖNENÇ GÜLER, 2021. "Examination of Consumer Purchase Decisions via Neuromarketing Methods: A Social Psychology Approach," Prizren Social Science Journal, SHIKS, vol. 5(2), pages 14-29, August.
    7. Khan, Imran & Hollebeek, Linda D. & Fatma, Mobin & Islam, Jamid Ul & Riivits-Arkonsuo, Iivi, 2020. "Customer experience and commitment in retailing: Does customer age matter?," Journal of Retailing and Consumer Services, Elsevier, vol. 57(C).

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