To Grow Your Brand, You Need More Customers. The Key is How Many You Have, Not How Much They Buy.

Marketing Research (USA) summer 2009

4 Pages Posted: 14 Jul 2014

See all articles by John Dawes

John Dawes

University of South Australia - Ehrenberg-Bass Institute

Date Written: July 14, 2014

Abstract

When brands grow, what changes more: the number of households buying, or the average number of units they buy in the course of a year? We examined twelve US package-goods brands that exhibited high growth from 2005 to 2007 to find out the answer. For eleven of the twelve brands, growth was accompanied by a much bigger percentage change in the numbers of households buying the brand, compared to their brand buying rate. The management implication is: to grow, you must attract lots of new buyers and worry less about boosting how much of your brand they buy.

Keywords: brand growth, brand penetration, loyalty

JEL Classification: M31

Suggested Citation

Dawes, John, To Grow Your Brand, You Need More Customers. The Key is How Many You Have, Not How Much They Buy. (July 14, 2014). Marketing Research (USA) summer 2009, Available at SSRN: https://ssrn.com/abstract=2465765 or http://dx.doi.org/10.2139/ssrn.2465765

John Dawes (Contact Author)

University of South Australia - Ehrenberg-Bass Institute ( email )

GPO Box 2471
Adelaide, 5001
Australia

HOME PAGE: http://www.johndawes.info

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