Effect of Sales on Brand Loyalty

Rui Huang, Jeffrey Perloff and Sofia Villas-Boas

No 25062, CUDARE Working Papers from University of California, Berkeley, Department of Agricultural and Resource Economics

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: Industrial Organization; Marketing (search for similar items in EconPapers)
Pages: 40
Date: 2005
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/25062/files/wp051011.pdf (application/pdf)

Related works:
Journal Article: Effects of Sales on Brand Loyalty (2006)
Working Paper: Effect of Sales on Brand Loyalty (2006)
Working Paper: Effect of Sales on Brand Loyalty (2006)
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:ags:ucbecw:25062

DOI: 10.22004/ag.econ.25062

Access Statistics for this paper

More papers in CUDARE Working Papers from University of California, Berkeley, Department of Agricultural and Resource Economics Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().