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1 – 10 of 419A.S.C. Ehrenberg and G.J. Goodhardt
Discusses repeat‐buying in terms of a case history of a non‐durable product. Measures the repeat‐buying behaviour by means of a survey carried out for the Market Analysis and…
Abstract
Discusses repeat‐buying in terms of a case history of a non‐durable product. Measures the repeat‐buying behaviour by means of a survey carried out for the Market Analysis and Evaluation Grant, Unilever. Reveals how repeat‐buying of a new brand soon reaches a par with its competitors.
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Studies purchasing behaviour for the leading brands of a frequently bought household product and discusses this. Enquires in depth about the nature and habits of those buyers of a…
Abstract
Studies purchasing behaviour for the leading brands of a frequently bought household product and discusses this. Enquires in depth about the nature and habits of those buyers of a brand – who in a given time period purchase that brand to the exclusion of competitors. Focuses on the purchasing behaviour of sole buyers (who mostly buy only one particular brand). Examines the incidence of sole buyers; frequency of buying, and period‐to‐period repeat buying; how many in a given period; how often purchased in that period; and how many buy it again in the next period? Concludes that present findings give one answer – showing that the sole buyer as defined is more regular in his/her buying behaviour than is the average buyer of the brand.
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Present data suggest that planned price increases should be carried out gradually in small systematic increments. However, an identical approach would not seem necessary for price…
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Present data suggest that planned price increases should be carried out gradually in small systematic increments. However, an identical approach would not seem necessary for price reductions. This is the third in a series of related experiments on brand choice behaviour, the major interest of which lies in the effects of introducing and withdrawing a price increase/reduction over a protracted period. The effects of each price change are assessed through the use of an interrupted multiple time‐series design with an equivalent no‐treatment control group. Various extensions to previous research are offered, and it is found that the effects of reduction extend beyond the promotional period. Price increases appear to have an effect on penetration only, but a stronger effect is measured than for a decrease.
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The purpose of this paper is to attempt to test whether price and quality have any influence on customer repeat purchase probability. Managers should know the strategic…
Abstract
Purpose
The purpose of this paper is to attempt to test whether price and quality have any influence on customer repeat purchase probability. Managers should know the strategic determinants of repeat purchase probability to retain customers.
Design/methodology/approach
Primary data were gathered on repeat purchase, price and quality via a survey of 400 customers of two brands in the Business-to-customer (B2C) sector. Then 380 × 4 data points to a logit model were fitted to estimate the effects of price and quality on customer repeat purchase probability.
Findings
It was found that price, quality and price × quality influence customer repeat purchase probability substantially. Furthermore, the elasticities of repeat purchase probability to price and quality are quite high in both cases.
Practical implications
Managers should use elasticities to determine how to allocate funds between price and quality to maximize repeat purchase probability.
Originality/value
In view of the complexity of customer repeat buying behavior, this study deals with one aspect or feature of the total process, which does not mean that it has no value. By confirming two strategic determinants of customer repeat purchase probability and suggesting a simple rule of fund allocation, this work definitely adds some research of value to the relevant marketing literature.
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Martin Klepek and Daniel Kvíčala
The purpose of this paper is to identify how fashion and cosmetics e-stores compete and grow to help e-commerce managers set the corresponding marketing strategy. It describes the…
Abstract
Purpose
The purpose of this paper is to identify how fashion and cosmetics e-stores compete and grow to help e-commerce managers set the corresponding marketing strategy. It describes the relevance of customer acquisition and retention to market share as the essential performance metrics.
Design/methodology/approach
An empirical generalization approach where patterns in data appearing across studies are described by a mathematical or graphical method is used. To do that, the authors observed real transactional data and the effect of how e-stores benefit from new and returning customers and gain a larger market share. The authors have analysed behavioural data from nearly 124,000 e-commerce customers in two highly popular product categories (fashion and cosmetics) in the size of 10,000,000 euros in sales or more.
Findings
Fashion and cosmetics e-stores with more market penetration tend to have a higher market share measured both by the number of total purchases and the number of sales in euro. In other words, market penetration is a solid predictor of market share in all circumstances. Interestingly, no significant difference in loyalty has been observed in relation to market share growth except in the situation where the market partition was excluded from the product category.
Research limitations/implications
The businesses under study derived only from one country and only two product categories were observed. Thus, there is a potential limitation in generalizing the findings to the whole e-commerce market from a geographical and category perspective. The length of the observation period may also play a role as a longer period increases the chance of repeat buying.
Practical implications
E-commerce managers can gain long-term market share growth mainly via higher market penetration (acquisition of new customers) and should avoid misleading overfocus on loyalty tactics (retention of current customers). The study also provides important benchmarks for e-commerce businesses in the fashion and cosmetic categories.
Originality/value
In the market share growth literature, only a handful of studies focus on stores and not on products. Moreover, there is a dominance of fast-moving consumer goods categories. Surprisingly, studies analysing ever-growing e-commerce markets are scarce. Thus, this research is original because it describes, using empirical data, how brands online, at the store level and within the fashion and cosmetics category, grow their market share. It is also one of the few studies that work with real business transactional data.
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Paulo Botelho Pires and José Duarte Santos
Buying online has become a widespread and common activity for consumers, and, for many organizations, e-commerce has become a very profitable alternative to sell their products…
Abstract
Buying online has become a widespread and common activity for consumers, and, for many organizations, e-commerce has become a very profitable alternative to sell their products and services, also allowing them to leverage their strategy in new geographical markets immediately. Although the literature on the subject is comprehensive, there is a gap in identifying the holistic constructs that are the determinants of consumers' choice of an online store. This research resorts to an exploratory study, based on a nonsystematic literature review, seeking to identify these constructs. The results obtained allowed us to identify the following constructs: consumer behavior, customer experience, web content, catalog, terms and conditions, customer support, perceived value, trust, security and privacy, satisfaction, and loyalty. Customer experience, satisfaction, and loyalty constructs stand out from a strategic perspective.
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Alistair Mowat and Ray Collins
Supply chains in new and emerging agricultural industries typically lack information linking product quality with consumer behaviour. This case study of the emerging persimmon…
Abstract
Supply chains in new and emerging agricultural industries typically lack information linking product quality with consumer behaviour. This case study of the emerging persimmon industry in Australia and New Zealand demonstrates how adopting a supply chain orientation can address this situation. Assessing and modelling consumer response to product quality provides information that demonstrates to supply chain stakeholders how better product quality management can improve the performance of the whole chain. Emerging fruit industries, therefore, have more incentive to adopt a supply chain orientation if they understand quality‐related factors that drive consumer satisfaction and repeat buying behaviour.
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Discusses new products introduced in the marketplace as being repurchasable and concerns itself with an estimate of the ratio of first‐time buyers to repeat buyers, relating this…
Abstract
Discusses new products introduced in the marketplace as being repurchasable and concerns itself with an estimate of the ratio of first‐time buyers to repeat buyers, relating this to the product expansion rate and time between first‐time and repeat buying. Gives fundamental hypotheses and defines the problems involved using tables and mathematical equations for emphasis giving examples of applications. Concludes that the model here may be usefully employed to obtain indications of the market wherever the sale of a product is expanding rapidly – but the turnover is also large.
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Investigates the purchasing of brands across different price tiers. The purpose was to determine if buying across price tiers followed the same pattern widely found in brand…
Abstract
Purpose
Investigates the purchasing of brands across different price tiers. The purpose was to determine if buying across price tiers followed the same pattern widely found in brand purchasing, known as the Duplication of Purchase Law.
Design/methodology/approach
Uses a consumer survey methodology, using bottled wine as an example category. It provides evidence that while buyers exhibit repeat‐purchase loyalty to price tiers, they also buy from a repertoire of different price tiers.
Findings
Finds that sharing of purchases with other price tiers does approximate the Duplication of Purchase Law. That is, a price tier shares customers with other price tiers approximately in line with the overall popularity of those other price tiers. This suggests that competition between price tiers is largely predictable, and based on the prevalence of purchases at each tier. However, there is also consistent “partitioning” where adjacent price tiers share customers to a greater extent than would be expected under the Duplication of Purchase Law.
Originality/value
This research is valuable to both marketers and researchers, as it provides a quantifiable context and structure to those examining competition from a pricing perspective. It provides insights into where new brands should be launched and potential cannibalization effects. Finally, the presence of a price repertoire suggests that researchers should be wary of categorizing buyers to specific segments based on single answers to questions about “last” or “typical” price paid for purchases. Several fruitful areas for further research also emerge from this study, in particular the examination of what price levels or tiers actually constitute break‐points in markets, whereby brands residing in one tier are recognized as markedly different to those in other tiers.
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John G. Dawes, Charles Graham and Giang Trinh
The study investigates the long-term erosion of repeat-purchase loyalty among consumers who purchase brands in a one-year base period.
Abstract
Purpose
The study investigates the long-term erosion of repeat-purchase loyalty among consumers who purchase brands in a one-year base period.
Design/methodology/approach
The study uses a five-year consumer panel of continuous reporters. We identify brand buyers in a base year, then calculate the proportion that fail to buy the brand in later years. We analyse the top 20 brands in 10 consumer goods categories.
Findings
We find pronounced erosion in repeat-buying over the long-term. The proportion of buyers from a base year that fail to buy in a later year increases steadily over time, from 57% in year 2 to 71.5% by year 5. Moreover, we identify brand and marketing mix factors linked to this over-time customer loss or erosion.
Research limitations/implications
The study provides evidence that consumers’ propensity to buy particular brands changes over a period of years, even though those brands continue to exhibit a stable market share. This evidence provides a different interpretation than the literature to date, which has viewed purchase propensities as fixed.
Practical implications
The study finds that store brands and niche brands exhibit lower levels of erosion in their buyer base; that a broad range is associated with lower erosion, and that high price promotion incidence is associated with lower erosion for manufacturer brands.
Originality/value
Loyalty erosion has been reported before (Ehrenberg, 1988; East and Hammond, 1996) but only over short periods. This study examines the phenomenon over five years, confirms that the rate of erosion does diminish over time, and that it is related to category and brand characteristics, as well as marketing mix decisions.
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