Effects of Sales on Brand Loyalty
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Rui Huang
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.
©2011 Walter de Gruyter GmbH & Co. KG, Berlin/Boston
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- Effects of Sales on Brand Loyalty
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Articles in the same Issue
- Article
- Strategic Labeling and Trade of GMOs
- Ensuring a Safe Food Supply: The Importance of Heterogeneity
- Less Choice is Better, Sometimes
- Choices of Marketing Outlets by Organic Producers: Accounting for Selectivity Effects
- Effects of Sales on Brand Loyalty
- Imperfect Competition and Strategic Trade Theory: Evidence for International Food and Agricultural Markets
- Market Power and European Competition in the Swedish Food Industry
- Market Segmentation Analysis of Preferences for GM Derived Animal Foods in the UK
- Proving Anti-Competitive Conduct in the U.S. Courtroom: Economic Issues with the Courts' Opinions in Pickett v. Tyson Fresh Meats, Inc.
