Erosion and variability in brand loyalty.

Abstract

In this paper, we examine the over-time behavior of brand loyalty for a large set of brands drawn from many product categories. Using the brand-loyalty operationalization of Colombo and Morrison (1989), the following conclusions are obtained. First, little support is found for the often-heard contention that brand loyalty is gradually declining over time. Second, while the short-run variability around a brand's mean loyalty level is not negligible, no evidence is found that this variability has systematically increased over time, and it can be reduced considerably through a simple smoothing procedure. Finally, this brand-loyalty pattern for market-share leaders is found to be more stable than for other brands.Brand loyalty; Loyalty; Variability;