The relationship between a brand's share of users and its loyal franchise is investigated. Using TGI data on consumer purchase habits covering 1,000 brands in 86 product classes, it is found that brands with a larger share of users have proportionately larger fractions of loyal buyers. These results are useful in the allocation of resources between the enlargement of a brand's base of users and the development of users' loyalty.
Get full access to this article
View all access options for this article.
References
1.
BlattbergRobert, and GolantyJohn (1978), “Tracker: An Early Test Market Forecasting and Diagnostic Model for New Product Planning,”Journal of Marketing Research, 15 (May), 192–202.
2.
BuzzellRobert D. (1981), “Are There ‘Natural’ Market Structures?,”Journal of Marketing, 45 (Winter), 42–51.
3.
BuzzellRobert D., GaleB. T., and SultanR. G. M. (1975), “Market Share—Key to Profitability,”Harvard Business Review, 53 (January–February).
4.
CharltonP., and EhrenbergA. S. C. (1973), “McConnell's Experimental Brand Choice Data,”Journal of Marketing Research, 10 (August), 302–307.
5.
Eskin (1973), “Dynamic Forecasts of New Product Demand Using a Depth of Repeat Model,”Journal of Marketing Research, 10 (May), 115–129.
6.
FarrisPaul W., and BuzzellR. D. (1979), “Why Advertising and Promotional Costs Vary: Some Cross-Sectional Analyses,”Journal of Marketing, 43 (Fall), 112–122.
7.
FletcherAlan D., and BowersThomas A. (1979), Fundamentals of Advertising Research, Columbus, OH: Grid.
8.
CorporationHendry (1975), “Properties of Consumers and Consumer Markets,” report of the Center for Research in Marketing Strategy, New York: Hendry.
9.
JacobyJ. (1975), “A Brand Loyalty Concept: Comments on a Comment,”Journal of Marketing Research, 12 (November), 484–487.
10.
JacobyJ., and ChestnutRobert W. (1978), Brand Loyalty: Measurement and Management, New York: Wiley.
11.
JacobyJ., and KynerD. B. (1973), “Brand Loyalty vs. Repeat Purchasing Behavior,”Journal of Marketing Research, 10 (February), 1–9.
12.
JohnstonDon (1982), “Branded Products at the Crossroads,”Marketing Communications, 41 (March), 15–17.
13.
LeoneRobert P., and SchultzR. L. (1980), “A Study of Marketing Generalizations,”Journal of Marketing, 44 (Winter), 10–18.
14.
LilienGary L. (1979), “ADVISOR 2: Modeling the Marketing Mix Decision for Industrial Planning,”Management Science, 25 (February), 191–204.
15.
McConnellJ. D. (1968), “The Development of Brand Loyalty: An Empirical Study,”Journal of Marketing Research, 5 (February), 13–20.
16.
MoranWilliam T. (1976), “The Law of Conservation of Advertising Energy,” in Attitude Research Reaches New Heights, KingW. R., ed., Chicago: American Marketing.
17.
MoranWilliam T. (1978), “Information for Advertising Budgeting,” unpublished working paper, Greenwich, CT: Moran, Inc.
18.
RajS. P. (1982), “Brand Popularity and Brand Loyalty,” working paper #82-38, School of Management, Syracuse University.
19.
RajS. P., StaelinRichard, and MitchellAndrew A. (1977), “A General Procedure for Measuring the Effect of Promotions on Buying Behavior,” in Proceedings of the American Statistical Association, 386–391.
20.
RichardAdam (1982), personal correspondence.
21.
RubinsonJoel (1979), “Brand Strength Means More Than Market Share,”Journal of Advertising Research, 19 (October), 5.
22.
SissorsJack Z., and Reynold PetrayE. (1976), Advertising Media Planning, Chicago: Crain Books.
23.
StantonJohn L., and TucciL. A. (1982), “The Measurement of Consumption: A Comparison of Surveys and Diaries,”Journal of Marketing Research, 19 (May), 274–277.
24.
StrangRoger A., PrenticeRobert M., and ClaytonAlden G. (1975), “The Relationship between Advertising and Promotion in Brand Strategy,” report no. 75–119, Cambridge, MA: Marketing Science Institute.
25.
Target Group Index Report (1976), New York: Simmons Market Research Bureau, Inc.
26.
TarpeyL. X.Sr. (1974), “The Brand Loyalty Concept—A Comment,”Journal of Marketing Research, 11 (May), 214–217.
27.
TarpeyL. X.Sr. (1975), “Brand Loyalty Revisited: A Commentary,”Journal of Marketing Research, 12 (November), 488–491.
28.
TauberEdward M. (1982), “Editorial: The Building and Decay of Brand Franchises,”Journal of Advertising Research, 19 (April), 2.
29.
TukeyJohn W. (1977), Exploratory Data Analysis, Reading, MA: Addison-Wesley.
30.
WindYoram, and LernerDavid (1979), “On the Measurement of Purchase Data: Surveys versus Purchase Diaries,”Journal of Marketing Research, 16 (February), 39–47.
31.
WindYoram, and MahajanV. (1981), “Market Share: Concepts, Findings, and Directions for Future Research,” in Review of Marketing 1981, EnisBen, and RoeringK. J., eds., Chicago: American Marketing.
