Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/39299 
Year of Publication: 
2009
Series/Report no.: 
SFB 649 Discussion Paper No. 2009,061
Publisher: 
Humboldt University of Berlin, Collaborative Research Center 649 - Economic Risk, Berlin
Abstract: 
The need to understand and leverage consumer-brand bonds has become critical in a marketplace characterized by increasing unpredictability, diminishing product differentiation, and heightened competitive pressure. This is especially true for fast moving consumer goods (FMCG) manufacturers and retailers. Knowing why a customer stays loyal to a brand in multiple product categories is necessary for deriving suitable marketing strategies in the context of a brand extension, yet research on the motives, characteristics, life styles and attitudes of cross-category brand loyal customers has been investigated only in a limited number of studies. We will fill a gap in the literature on cross-category brand choice behavior by analyzing revealed preference data with respect to brand loyalty in several categories in which a brand competes. Provided with purchase and corresponding survey data we investigate the product portfolio of a leading nonfood FMCG brand. We segment consumers on the basis of their revealed brand preferences and, focusing on consumers' risk aversion, identify cross-category brand loyal customers' personality traits as determinants of their brand loyal purchase behavior.
Subjects: 
cross-category brand loyalty
risk aversion
share of category requirements
customer segmentation
JEL: 
R21
G11
J24
C25
Document Type: 
Working Paper

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