Abstract
A large-scale longitudinal analysis is used to study the repeat-purchase rates of brand buyers in stationary markets. The data cover the leading brands in a number of frequently purchased grocery categories in three countries. We find that, in the medium term, there is a systematic but limited loss of repeat-purchase loyalty; across nine markets, erosion (the proportionate fall in repeat-purchase loyalty) averages 15 percent in the first year for the brands studied. Erosion does not differ by weight of purchase: similar rates are found for light, medium, and heavy buyer-segments. Brand leaders are found to have a lower erosion than smaller brands.
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East, R., Hammond, K. The erosion of repeat-purchase loyalty. Market Lett 7, 163–171 (1996). https://doi.org/10.1007/BF00434907
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DOI: https://doi.org/10.1007/BF00434907