Keeping It in the Family: Brand Switching between Varieties of a Branded House

Kilts Center for Marketing at Chicago Booth – Nielsen Dataset Paper Series 1-044

34 Pages Posted: 25 May 2015 Last revised: 28 Aug 2016

See all articles by Anthony Koschmann

Anthony Koschmann

Emory University, Goizueta Business School, Students

Jagdish N Sheth

Emory University - Department of Marketing

Date Written: May 19, 2015

Abstract

Brand loyalty is often perceived as synonymous with the flagship brand or even parent brand through consumer surveys. Yet, many successful parent brands have extended into new product categories or as line extensions within the same product category. Using panel data, we show that what appears to be brand loyalty is really line loyalty: consumers that are brand loyal at face value are truly loyal to a line extension within the brand, in some cases even more loyal than the flagship brand. The implication for marketing academics is that the construct of brand loyalty should be redefined for line extension loyalty, and that marketing managers should utilize line extension loyalty switching as measure for line extension success.

Keywords: brand loyalty, variety seeking, Markov chain

Suggested Citation

Koschmann, Anthony and Sheth, Jagdish N, Keeping It in the Family: Brand Switching between Varieties of a Branded House (May 19, 2015). Kilts Center for Marketing at Chicago Booth – Nielsen Dataset Paper Series 1-044, Available at SSRN: https://ssrn.com/abstract=2608184 or http://dx.doi.org/10.2139/ssrn.2608184

Anthony Koschmann (Contact Author)

Emory University, Goizueta Business School, Students ( email )

1300 Clifton Road
Atlanta, GA 30322-2722
United States

Jagdish N Sheth

Emory University - Department of Marketing ( email )

Goizueta Business School
1300 Clifton Road
Atlanta, GA 30322
United States

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