A Comparison of Online and Offline Consumer Brand Loyalty

Peter Danaher, Isaac W. Wilson () and Robert A. Davis ()
Additional contact information
Isaac W. Wilson: DataMine Ltd., Wellington, New Zealand
Robert A. Davis: Department of Marketing, University of Auckland, Private Bag 92019, Auckland, New Zealand

Marketing Science, 2003, vol. 22, issue 4, 461-476

Abstract: In this study we compare consumer brand loyalty in online and traditional shopping environments for over 100 brands in 19 grocery product categories. The online purchase data come from a large traditional grocery retailer that also operates an online store for its products. The offline data corresponds to the exact same brands and categories bought in traditional stores by a panel of homes operated by ACNielsen for purchases made in the same city and over the same time period. We compare the observed loyalty with a baseline model, a new segmented Dirichlet model, which has latent classes for brand choice and provides a very accurate model for purchase behavior. The results show that observed brand loyalty for high market share brands bought online is significantly greater than expected, with the reverse result for small share brands. In contrast, in the traditional shopping environment, the difference between observed and predicted brand loyalty is not related to brand share.

Keywords: Brand Choice; Probability Models; Internet Shopping (search for similar items in EconPapers)
Date: 2003
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (87)

Downloads: (external link)
http://dx.doi.org/10.1287/mksc.22.4.461.24907 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:inm:ormksc:v:22:y:2003:i:4:p:461-476

Access Statistics for this article

More articles in Marketing Science from INFORMS Contact information at EDIRC.
Bibliographic data for series maintained by Chris Asher ().