The erosion of repeat-purchase loyalty |
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Authors: | Robert East Kathy Hammond |
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Affiliation: | (1) Kingston Business School, KT2 7LB Kingston, England;(2) London Business School, Regent's Park, NW1 4SA London, England |
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Abstract: | A large-scale longitudinal analysis is used to study the repeat-purchase rates of brand buyers in stationary markets. The data cover the leading brands in a number of frequently purchased grocery categories in three countries. We find that, in the medium term, there is a systematic but limited loss of repeat-purchase loyalty; across nine markets, erosion (the proportionate fall in repeat-purchase loyalty) averages 15 percent in the first year for the brands studied. Erosion does not differ by weight of purchase: similar rates are found for light, medium, and heavy buyer-segments. Brand leaders are found to have a lower erosion than smaller brands. |
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Keywords: | repeat-purchase erosion of loyalty weight of purchase brand leadership |
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