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Examining older consumers’ loyalty towards older brands in grocery retailing
Institution:1. Universidad Autónoma de Madrid, Madrid, Spain;2. Barcelona School of Management – Universitat Pompeu Fabra, Barcelona, Spain;1. Department of Management Sciences, Capital University of Science and Technology, Islamabad, Pakistan;2. Kulliyyah of Information Technology (KICT), International Islamic University, Kuala Lumpur, Malaysia;3. Department of Management Sciences, Yanbu University College, Yanbu, Saudi Arabia
Abstract:This paper compares the buying behaviours of older and younger consumers of older and newer brands in grocery retailing. We analysed 88,000 purchases of 60 brands from six categories. Behavioural loyalty measures for different consumer age cohorts were calculated and compared relative to each brand's launch date. Results showed older consumers do not buy older brands more often than newer brands. Older consumers also do not principally buy older brands. Therefore, brands of all ages compete for consumers of all ages. Findings indicate that for newer brands, older consumers should not be ignored as a market for growing the brand. For older brands, despite the default advantage of long-term exposure of older consumers, such advantage will fade if these brands fail to maintain a competitive presence in the market, as older consumers trial and become loyal to newer brands.
Keywords:Older consumers  Brand choice  Brand loyalty
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