1. Why Buy the Same Brand Twice
Dag Bennett
BCIM: Marketing & Strategy & The Ehrenberg Centre for Research in Marketing
What we can learn from Two Purchases
A little thought
“Habits are conditions of intellectual efficiency … Outside the scope of habits, thought works gropingly, fumbling in confused uncertainty…”
Dewey, Human Nature and Conduct, 1930
Repeat Buying Rates %
1/2
of a
of a category’s
customers
buy the same brand
Twice
in a row.
Nail varnish 66
Petro 66
Soft Drinks 64
Luxury cars 59
Facial Makeup 54
Shampoo 53
Lipstick 52
Toilet soap 51
Cars 50
Car Types 48
Sanitary Napkins 48
Airlines 46
Package tea 45
Fast Food 34
Mobile phones 33
TV sets
Two Purchase Analysis is useful
Where data is scarce
Developing markets, durables
New categories or markets
Where market snapshots are desirable
The more dynamic the market, the lower the loyalty.
Laws of Buying behaviour from Two Purchases
Brand loyalty exists, but for most
people is split between brands
Brands share their customers
Loyalty is in line with penetration
Loyalty is similar for category Brands
Sole brand loyalty is rare
Double jeopardy
Partitioning is rare, and usually functional
The more dominant a brand, the higher its loyalty premium
The Ehrenberg Centre
Objectives
To discover and disseminate reliable knowledge and understanding of how consumers behave and what this means for marketing.
Methods
Scientific study of data across many markets looking for consistent patterns that lead to grounded theory, generalised knowledge and understanding.
Empirical generalisation – the method of all science.
DEVELOPING MARKETING KNOWLEDGE