A Comparison of Online and Offline Consumer Brand Loyalty

Peter J. Danaher, Isaac W. Wilson, Robert A. Davis

Research output: Contribution to journalArticleResearchpeer-review

179 Citations (Scopus)

Abstract

In this study we compare consumer brand loyalty in online and traditional shopping environments for over 100 brands in 19 grocery product categories. The online purchase data come from a large traditional grocery retailer that also operates an online store for its products. The offline data corresponds to the exact same brands and categories bought in traditional stores by a panel of homes operated by ACNielsen for purchases made in the same city and over the same time period. We compare the observed loyalty with a baseline model, a new segmented Dirichlet model, which has latent classes for brand choice and provides a very accurate model for purchase behavior. The results show that observed brand loyalty for high market share brands bought online is significantly greater than expected, with the reverse result for small share brands. In contrast, in the traditional shopping environment, the difference between observed and predicted brand loyalty is not related to brand share.

Original languageEnglish
Pages (from-to)461-476+542
JournalMarketing Science
Volume22
Issue number4
Publication statusPublished - 1 Sep 2003

Keywords

  • Brand Choice
  • Internet Shopping
  • Probability Models

Cite this