The double jeopardy loyalty effect using discrete choice models

This paper analyses the double jeopardy loyalty effect on a utility framework using a discrete choice approach instead of the Dirichlet model.

The double jeopardy loyalty effect using discrete choice models

Jos Maria Labeaga-Azcona

Open University

Nora Lado-Coust

Carlos III University

Mercedes Martos-Partal

Universidad de Salamanca


This paper focuses attention on one of the principal brand equity bases: brand loyalty (Aaker 1991). The importance of brand loyalty has been recognised in the marketing literature for at least three decades (Howard & Sheth 1969). Many firms continue to implement customer loyalty activities, such as loyalty cards or frequent user programmes in order to increase customer loyalty.

According to one of the few law-like generalisations in marketing (Ehrenberg et al.1990), larger...

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