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43 Trademark Rep. 251 (1953)
Brand Loyalty - Fact of Fiction

handle is hein.journals/thetmr43 and id is 299 raw text is: BRAND LOYALTY - FACT OR FICTION* By Dr. George H. Brown** One of the most intriguing of all marketing questions revolves around brand loyalty. Do customers purchase a favorite brand time after time or do they shop around at random? Do the type of merchandise involved and the relative strength of brands have an important influence? How many customers stay with a single brand of a frequently purchased item for a considerable period of time? Just what is a brand loyal customer? Can a brand de- velop enough consumer loyalty so that it can get a sizable share of the market from a relatively small group of steady purchasers, or must it make occasional sales to a large proportion of the families in the market? Through the cooperation of the Chicago Tribune, ADvERTISING AGE has sponsored some basic research into the problems of brand loyalty at the University of Chicago. The Chicago Tribune has been operating a consumer purchase panel covering a wide variety of grocery and drug items for four years. The panel is a diary operation, perhaps the most extensive conducted on a local or regional basis by any private organization. It shows not only which items are purchased by the families in the panel, but the sequence of purchase. Thus, if a family makes ten purchases of coffee in a month, the panel data shows not only the total purchases and the brands bought, but whether Brand A, accounting for five of the ten purchases, was bought five con- secutive times and then abandoned, or whether the five purchases of that brand were interspersed with purchases of one or more other brands. The Tribune panel data used in the study covered the calendar year 1951. Although 610 families in the panel kept a complete record of their purchases for that year, only the purchases of 100 buyers of a particular product class were analyzed in detail. For example, 516 out of the 610 families bought margarine during the year 1951. To secure 100 families for the purchase profile, *Reprinted by permission from the January 26, 1953 issue of ADVERTISING AGE. Copyright 1953 by Advertising Publications Inc. *Professor of Marketing, the School of Business, University of Chicago; National director and past president of the American Marketing Association. Vol. 43 T. M. R. BRAND LOYALTY-FACT OR FICTION 251

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