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Marketing Letters

, Volume 30, Issue 1, pp 57–73 | Cite as

Brand loyalty evolution and the impact of category characteristics

  • Gauthier CasteranEmail author
  • Polymeros Chrysochou
  • Lars Meyer-Waarden
Article

Abstract

A common managerial belief indicates that brand loyalty declines over the years, with consumers becoming more heterogeneous in their choices. The earlier research investigating the phenomenon of brand loyalty decline is, however, inconclusive and does not offer an answer to the reasons behind brand loyalty evolution. In this study, we investigate brand loyalty evolution and explore the impact that a number of category characteristics have on driving brand loyalty evolution. We use Danish panel data across 54 categories over a period of 6 years (2006–2011). Our findings show that at the aggregate level, brand loyalty declines, but this evolution is category-specific, with only a small number of categories showing a significant decline. We further demonstrate that an increase in category penetration results in a negative impact on brand loyalty evolution, whereas an increase in the share of private label brands has a positive impact. We discuss the implications for theory and practice.

Keywords

Brand loyalty Evolution Polarization index Private label brands Category management 

Notes

Acknowledgements

The authors wish to thank GfK Denmark for granting access to the data used in this study.

Funding information

This research was supported in part by the Danish Council for Strategic Research under grant 2101-09-044, “Bridging the gap between health motivation and food choice behavior: A cognitive approach” (HEALTHCOG).

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Copyright information

© Springer Science+Business Media, LLC, part of Springer Nature 2019

Authors and Affiliations

  • Gauthier Casteran
    • 1
    Email author
  • Polymeros Chrysochou
    • 2
    • 3
  • Lars Meyer-Waarden
    • 4
  1. 1.IAE Limoges, CREOP EA 4332University of LimogesLimogesFrance
  2. 2.Department of ManagementAarhus UniversityAarhusDenmark
  3. 3.Ehrenberg-Bass Institute for Marketing Science, School of MarketingUniversity of South AustraliaAdelaideSouth Australia
  4. 4.TSM-Toulouse School of Management, TSM Research- UMR 5303 CNRSUniversity of Toulouse 1 CapitoleToulouseFrance

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