Showing papers on "Brand equity published in 1968"

Test Marketing: A Perturbation in the Market Place

Abstract: New products achieve positions in the market place by disrupting existing brand loyalty and switching patterns. Test markets can be viewed as going through phases of equilibrium prior to new product introduction, disequilibrium during introduction and return to equilibrium. This process is described by transition matrices of brand loyalty and brand switching. A method of analysis is developed which provides indices of the market's stability prior to new product entry, disequilibrium created by the introduction and the market's return to stability. This enables marketing management to judge the impact of introduction as well as evaluate test market results in approximately half the length of time normally required by conventional methods.

Household Correlates of "Brand Loyalty" for Grocery Products

Abstract: TzE relevance of "brand loyalty" to the formulation of a profitable program of market segmentation has intrigued both practitioners and scholars alike ever since the publication of the pioneering work of Brown' and Cunningham2 in the early 1950's. Its usefulness as a basis for segmentation depends, in part, on the answers to the following questions: To what extent do brand-loyal customers constitute an identifiable market segment? Do they tend to have different rates of consumption for the product under study? Do they have different income levels? Different ethnic backgrounds? Different store shopping patterns? If differences such as these do exist, they would help manufacturers to better understand the process underlying the generation of brand loyalty and would provide a partial basis for the formutlation of their marketing programs. The study reported in this paper consists of an analysis of the relationship between characteristics such as these and household brand loyalty for forty-four grocery products. Since the time of Brown's and Cunningham's work, several studies have been published which have attempted to identify brand-loyal customers in terms of socioeconomic, demographic, personality, and/or selected consumption characteristics.3 With the exception of one study by Farley,4 none of these have been based on an explicit theory of the nature of the underlying process. Farley used Stigler's theory of the economics of information5 as a basis for developing hypotheses as to the characteristics of households that would tend to exhibit greater than average brand loyalty within a product class. He reasoned that the expected gain associated with searching (given that the brands in a product class are considered close substitutes) should be positively correlated with the amount purchased by the buyer. The primary reason for searching in this context would be to find lower prices. Thus, one *Associate professor of marketing, Wharton School of Finance and Commerce, University of Pennsylvania. t Doctoral candidate in marketing, Wharton School of Finance and Commerce, University of Pennsylvania.