Title: How could reference price and loyalty influence brand choice?

Authors: Begona Alvarez Alvarez, Rodolfo Vazquez Casielles

Addresses: Commercialization e Investigation de Mercados, Facultad de Ciencias Economicas y Empresariales, Universidad de Oviedo, Avda. del Cristo s/n, 33071 Oviedo, Asturias, Espana. ' Commercialization e Investigation de Mercados, Facultad de Ciencias Economicas y Empresariales, Universidad de Oviedo, Avda. del Cristo s/n, 33071 Oviedo, Asturias, Espana

Abstract: This study discusses the process of brand choice and the variables taking part in it. Segmentation is carried out according to the customers| loyalty. A panel consisting of 4000 households nationwide is used. The first part of the study explains how the reference prices are built. Then, it shows the effect that the comparison between prices and reference prices (losses or gains) has on brand choice. Finally, it analyses how the response before the previous variables varies based on the loyalty of the households. The issues covered in this paper are meaningful and important because the results can help with the formulation of strategies.

Keywords: brand choice; reference price; gains; losses; customer loyalty; consumer loyalty.

DOI: 10.1504/IJESB.2006.009276

International Journal of Entrepreneurship and Small Business, 2006 Vol.3 No.3/4, pp.287 - 309

Published online: 15 Mar 2006 *

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