Giang Trinh

Do product variants appeal to different segments of buyers within a category

Purpose – This study responds to the call of Fader and Hardie for more research on buyer behaviour toward stock keeping units (SKU). This paper aims to examine whether different SKU‐based product variants appeal to buyers with different demographic characteristics.Design/methodology/approach – This study examines the product variants (such as size, formulation, type) of a range of brands in six consumer goods categories. The authors calculate and compare the market share of each variant within each demographic group. If a variant has a higher market share within a specific demographic group than the overall average, this indicates segmentation at the product variant level.Findings – The findings show that there are many differences in the market shares of product variants among different demographic groups of buyers. The largest differences are found extensively within the age and employment status variables.Originality/value – Functionally different product variants tend to draw different demographic‐bas...

Can the negative binomial distribution predict industrial purchases

Purpose This paper aims to extend the known boundary conditions of the negative binomial distribution (NBD) model, and to test the applicability of conditional trend analysis (CTA) – a key method to identify whether changes in overall sales are accounted for by previous non-buyers, light buyers or heavy buyers – in industrial purchasing situations. Design/methodology/approach The study tested the NBD model and CTA in an industrial marketing context using a 12-month data set of purchases from an Australian supplier of a range of industrial plastic resins. Findings The purchase data displayed a good NBD fit; the study therefore extends the known boundary conditions of the model. The application of CTA provided second-period purchasing frequency estimates showing no significant difference from actual data, indicating the applicability of this method to industrial purchasing. Research limitations/implications Data relate to just one supplier. Further research across several industries is required to confirm the generalizability and robustness of NBD and CTA to industrial markets. Practical implications Marketing decisions can be improved through appropriate analysis of customer purchasing data. However, without access to equivalent competitor data, industrial marketers are constrained in benchmarking the purchasing patterns of their own customers. The results indicate that use of the NBD model enables valid benchmarking for industrial products, while CTA would enable appropriate analysis of purchases by different classes of customer. Originality/value This paper extends the known boundary conditions of the NBD model and provides the first published results, indicating the appropriateness of CTA to predict purchasing frequencies of different industrial customer classes.

A Comparison of Brand Loyalty Between On-the-Go and Take-Home Consumption Purchases: An Abstract

This paper compares consumer behavioral brand loyalty in purchasing for on-the-go and for take-home consumption. The study uses two consumer packaged goods datasets from the UK. The first dataset contains actual consumer repeat purchasing of soft-drink brands for on-the-go consumption. The second dataset contains actual consumer repeat purchasing of the same brands for take-home consumption. Using polarization index as a behavioral loyalty measure, estimated from the Beta Binomial – Negative Binomial Distribution, the study finds that consumer loyalty to brands is markedly higher in purchasing for on the go consumption than for take home consumption.

Has Loyalty to Online Grocery Retailers Declined? An Abstract

This paper investigates behavioral loyalty of consumers to online grocery retailers over time. The study uses consumer packaged goods data from the UK, one of the most advanced online retailing countries. The data contains actual consumer repeat purchasing of three product categories (soft drinks, toothpaste, and cat food) from four major grocery retailers (Tesco, Asda, Sainsbury’s, and Waitrose) operating online from 2005 to 2014. Using three measures of behavioral loyalty (share of category requirement, repertoire size, and polarization index), the study finds that consumer loyalty to online retailers has declined from 2005 to 2009 and remained stable from 2010 to 2014.

Stochastic Nature of Attending Behavior at Sporting Events: A Structured Abstract

This paper applies the well-known stochastic NBD model to attending behavior at sporting events. Using data from a large national survey across a range of sporting events in Australia including Australian football, rugby league, soccer (outdoor), horse racing, cricket (outdoor), netball (indoor and outdoor), basketball (indoor and outdoor), and tennis we show that the NBD is very robust in describing sporting event attending behavior. This result suggests that attendance at sporting events is largely random in nature. The stochastic assumption has important implications for sporting event marketing activities such as which segments of attendees should be targeted, as well as predicting future attending behavior.

Loyalty to Private Labels/National Brands and Prices Paid: Are Highly Loyal Customers Paying More?

The latest trend in the private label world are premium private labels, often more expensive than standard national brands (ter Braak, Geyskens, & Dekimpe, 2014). The question arises, are those who are already buying a lot of private labels a potential target for more expensive private labels? This paper aims to answer this question by examining the relationship between the loyalty to private labels and national brands and the average price paid. We utilized the UK Kantar TNS panel data and looked at purchasing of ten product categories between 2008 and 2012. The findings show that the higher the loyalty to private labels the lower the average price paid for private labels. In contrast, the more loyal consumers are to national brand the higher the average price paid for national brands. The findings provide important implications for retailers wanting to target shoppers with their premium private label offers in different categories.