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The purpose of this paper is to describe the further development of the previously introduced switch of brand (SB) model (presented in 2012) which helps to approximate…
The purpose of this paper is to describe the further development of the previously introduced switch of brand (SB) model (presented in 2012) which helps to approximate variety-seeking behaviour (VSB) out of household panel data.
Based on existing theoretical variety-seeking models analysing household panel data, the further expansion of the variety-seeking model “Switch of Brands” (SB) is presented. In the last contribution in the British Food Journal the authors presented this simple but powerful tool to approximate VSB. The further developed model “Switch of Brands – Promotions” (SB PR ) integrates relevant variables into one theoretical variety-seeking model (number of purchased brands, number of purchases, price promotions, etc.). In particular, price promotions were integrated into the SB model in order to deliver even more realistic approximations of households’ VSB.
The explanatory power of the model in view of brand loyalty is tested. The empirical analysis is conducted with scanner household panel data from Austria in three different product categories.
The data analysis shows that the model has an excellent explanatory power concerning brand loyalty, however, not better than the original SB model.
The SB PR model allows interpretations for marketing purposes and brand management including marketing variables (here: price promotions). The model may be applied in any business field where panel data are available.
The model delivers a consistent theoretical framework for approximating VSB by means of purchase histories.
The aim of this paper is to introduce and evaluate an expanded model approximating variety‐seeking behaviour (VSB), which is defined as the phenomenon that consumers…
The aim of this paper is to introduce and evaluate an expanded model approximating variety‐seeking behaviour (VSB), which is defined as the phenomenon that consumers switch between brands because of the utility gained from the switch itself.
As a theoretical basis, two existing approaches, the switch (S) and the successive switch (SS) models, were examined and adjusted. The integration of both approaches led to the expanded “switch of brands” (SB) model. SB was tested empirically using panel data for a highly developed food market (the Austrian food market for three product categories, i.e. fruit juice, fruit yoghurt, and chocolate, with data for 2007 and 2008).
The integration of S and SS into the expanded SB model succeeded. Based on an annual comparison, the reliability of the SB model was tested. Since the results can be reproduced, it can be determined that the SB model is reliable. To test the explanatory power, a variable assessing brand loyalty (“brand purchase frequency”) was introduced. Correlation analyses showed that the expanded variety‐seeking model is more appropriate for approximating VSB than either S or SS.
The SB model is still very basic, integrating only three variables. Other influencing variables have to be considered to further improve the significance of the SB model.
The expanded VSB model can be applied in all product categories and markets where panel data are available. It helps to analyse panel data in view of consumers' variety seeking and brand switching behavior.
The expanded variety‐seeking model (SB) is easy to implement and gives valid information on VSB. It can be used for marketing decisions, especially in connection to brand management.