Repeat Purchase

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Date Submitted: 02/28/2013 07:45 PM

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"Integrating Information from Advertising and Trial: Processes and Effects on Consumer Response to Product Information," Journal of Marketing Research, 30 (May), 204-19.

----- and William R. Swinyard (1983), "Information Response Models: An Integrated Approach," Journal of Marketing Research, 20 (August), 257-67.

Srinivasan, V. and Helen A. Weir (1988), "A Direct Aggregation Approach to Inferring Microparameters of the Koyck In markets in which first-time purchases are rare, advertising, if it works at all, affects brand shares by either inducing switching or retaining customers who otherwise might switch. There are three possible consequences advertising exposure can have on a household's brand choice. It can increase the probability that the household will change brands (brand switching), it can induce the household to stay with the brand last purchased (repeat purchasing), or it can have no effect on choice probabilities.

The academic literature gives reasons to believe that each of these effects is possible and presents a number of different mechanisms. Brand switching effects can result from advertising building brand awareness or altering beliefs about brands. Repeat purchasing effects can result from these same direct effects of advertising or, alternatively, from an interaction between advertising and brand usage whereby advertising serves to illuminate the brand usage experience. This generally is called "framing." There are two types of framing, depending on the time sequence. If advertising precedes the experience, we call this "predictive framing." If advertising follows the usage experience, we call this "diagnostic framing." An additional mechanism is that advertising's effects can be negated by the consumer's personal experience in using the product, which we call "usage dominance."

The contribution of this article is twofold. First, we develop a management science model, based on these behavioral mechanisms, for investigating whether...