Share of Wallet in Loyalty Research: Issues and a Methodology to Address Them

In a competitive market environment, share of wallet is a key measure for customer relationship management. Share of wallet analysis enables the firm to be more proactive in their ability to target customers to increase additional spending. Although share of wallet is important as a measure of customer loyalty, there is a dearth of research which focuses on share of wallet per se. In this paper, we briefly review the share of wallet literature in the context of its value to loyalty researchers. We illustrate some issues regarding share of wallet in identifying loyalty and then discuss the development of a methodology to alleviate the issues by introducing an adjusted share of wallet approach, “Share of Wallet Index” (SOWI). SOWI is calculated by multiplying by the square root of the percent that each customer is above and below the median spend in the category times the raw share of wallet measure. The SOWI approach offers a useful tradeoff between modeling total dollars and modeling raw share of wallet by taking into account both category spend and category share. It also contributes to the literature on customer relationship management and loyalty and advances the empirical analysis on the customer loyalty behavior. This research provides several managerial implications. First, this share of wallet index may help firms to identify additional revenue opportunities when more effort is used with specific customers. Second, firms can understand their relative competitive positions in the market place. We discuss limitations and future research opportunities

Role of Symbiotic Auxotrophy in the Rhizobium-Legume Symbioses

Symbiotic auxotrophy occurs in both determinate pea and indeterminate bean nodules demonstrating its importance for bacteroid formation and nodule function in legumes with different developmental programmes. However, only small quantities of branched chain amino acids are needed and symbiotic auxotrophy did not occur in the Sinorhizobium meliloti-alfalfa symbiosis under the conditions measured. The contrasting symbiotic phenotypes of aap bra mutants inoculated on different legumes probably reflects altered timing of amino acid availability, development of symbiotic auxotrophy and nodule developmental programmes

The Importance of Service Quality on Consumer Choice Behavior

Michael D. Richard is an Assistant Professor of Marketing in the Department of Marketing, Quantitative Analysis, and Business Law at Mississippi State University. Arthur W. Allaway is an Associate Professor of Marketing in the Department of Management and Marketing at the University of Alabama

Capturing Competitive, Cannibalistic, And Variety-Seeking Influences On Market Share: An Asymmetric Modeling Approach

This paper attempts to focus on the asymmetric source-of-share issue by building and calibrating a probabilistic choice model which estimates market share at the consumer level while also capturing the asymmetric influence of inter-brand competition, intra-brand cannibalism, and cross-form variety-seeking. The results suggest that the inclusion of asymmetric influences improves the fit to the data. Asymmetric variety-seeking is demonstrated to be a function of the dissimilarity between offerings. Managers who ignore asymmetric variety-seeking may be ignoring some of their closest competitors. The importance of asymmetric competition and symmetric cannibalism must also be taken into account. Both are demonstrated to be functions of the similarity between offerings. Managers who ignore asymmetric cannibalism may introduce offering extensions that leave the firm no better off financially. These extensions conceivably could have a negative impact on the financial viability of the firm given the extra cost of expanding their offering mix. In addition, asymmetric competition provides new insights as to the competitors most likely to be affected by a given firms actions