Effects of Sales on Brand Loyalty

Rui Huang, Jeffrey Perloff and Sofia Villas-Boas ()
Additional contact information
Rui Huang: University of California, Berkeley

Journal of Agricultural & Food Industrial Organization, 2006, vol. 4, issue 1, pages 1131-1131

Abstract: Although many theoretical industrial organization models are based on the existence of a critical mass of exogenously "brand loyal" consumers, we find little empirical evidence supporting these assumptions in the orange juice retail market. There are very few loyal consumers. More importantly, the frequency with which stores conduct sales affects the share of loyal types so that loyalty is endogenous rather than exogenous. Households' demographics have statistically significant but economically minor effects on switching behavior. Switching across frozen and refrigerated states is very common, leading to more complicated substitution patterns and less loyalty than one observes looking at each state separately.

Keywords: sales; loyalty (search for similar items in EconPapers)
Note: oai:bepress:jafio-1131
View list of references

Downloads: (external link)
http://www.bepress.c ... e=1131&context=jafio (application/pdf)
Subscription to the journal may be required to access full texts.

Related works:
Working Paper: Effect of Sales on Brand Loyalty (2005)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Ordering information: This journal article can be ordered from
http://www.bepress.com/subscriptions.html

Access Statistics for this article

More articles in Journal of Agricultural & Food Industrial Organization from Berkeley Electronic Press
Series data maintained by Christopher F. Baum ().