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| Tekijä: | McCarthy, P.S. Kannan, P.K. Chandrasekharan, R. |
| Otsikko: | Estimating loyalty and switching with an application to the automobile market |
| Lehti: | Management Science
1992 : OCT, VOL. 38:10, p.1371-1393 |
| Asiasana: | BRANDS SWITCHING COSTS LOYALTY CAR INDUSTRY MARKETS |
| Kieli: | eng |
| Tiivistelmä: | A brand switching model is presented that uses data on the choices: previous choice and current choice, and substitute choice of product alternative if the current choice were not available. An assumption of the model is that the market consists of loyal and shopper types of customers. The model gives estimates for the proportion of Loyals in a submarket a nd the success of each submarket in capturing Shoppers. It is shown how the model can be used to characterize the competitive structure of the market, and how the estimated parameters of the model can be validated using simulation and covariance matrix. An empirica l application of the model on automobile data provides insights into several interesting marketing phenomena. |
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