THE EFFECTS OF ADVERTISING ON BRAND SWITCHING AND REPEAT PURCHASING

The authors examine switching and repeat purchase effects of advertisi ng in mature, frequently purchased product categories. They draw on co nsumer behavior theories of framing and usage dominance to formulate a logit choice model for measuring these effects. They estimate the mod el using single-source scanner data. Their results suggest that advert ising induces brand switching but does not affect the repeat purchase rates of consumers who have just purchased the brand, a result consist ent with usage dominance rather than framing. They find the switching influence to be largely confined between the current and previous purc hase occasions. They illustrate the magnitude of this effect and explo re potential profitability.