Publications

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Deconstructing Store Switching

Authors:

Xavier Drèze
Marc Vanhuele

Publisher:

Abstract:

Based on insights from the academic and practitioner-oriented literature, we propose two new measures of store loyalty: the store-by-format share-of-wallet profile and the multinomial runs test. These measures offer a new perspective on store switching behavior on two dimensions. First, although initial observations based on traditional store loyalty measures suggest there is a wide diversity in switching behavior, a segmentation based on our new measures uncovers only a limited number of patterns of behavior. Second, our new measures indicate that there is a lot more store loyalty than appears at first glance.