It's a Dirichlet World: Modeling Individuals' Loyalties Reveals How Brands Compete, Grow, and Decline

John Dawes (), Bryon Sharp (), Malcom Wrigth (), Carl Driesener (), Lars Meyer-Waarden (), Lara Stocchi () and Philip Stern ()
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Lars Meyer-Waarden: marketing - CRM - Centre de Recherche en Management - UT Capitole - Université Toulouse Capitole - UT - Université de Toulouse - IAE - Institut d'Administration des Entreprises - Toulouse - CNRS - Centre National de la Recherche Scientifique

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Abstract: irichlet is one of the most important theoretical achievements of marketing science. It provides insights into the distribution of consumer loyalties and is used widely in industry for benchmarking and interpreting brand performance. The Dirichlet's implications run counter to some well-entrenched marketing pedagogy and so, unsurprisingly, it has attracted criticism arguing that it cannot adequately reflect the dynamic nature of consumer choice. The authors address these criticisms by discussing how consumer loyalties are manifested and examining whether changes in consumer loyalties do, in fact, disrupt Dirichlet buying patterns. To the best of our discipline's knowledge, based on extensive empirical and theoretical work, brands compete in a Dirichlet world.

Keywords: MARKETING science; CUSTOMER loyalty; CONSUMER behavior; Mathematical models; BRAND choice; BENCHMARKING (Management); MARKETING strategy; MARKETING management; RESEARCH; "MARKETING science"; "CUSTOMER loyalty"; "CONSUMER behavior "; "Mathematical models"; "BRAND choice"; " "BENCHMARKING (Management)"; " MARKETING strategy"; "MARKETING management"; "RESEARCH" (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (12)

Published in Journal of Advertising Research, 2012, 52 (2), pp.203-213. ⟨10.2501/JAR-52-2-203-213⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:halshs-00862211

DOI: 10.2501/JAR-52-2-203-213

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