Consideration sets of size one: An empirical investigation of automobile purchases

Lapersonne, Eric; Laurent, Gilles; Goff, Jean-Jacques Le

doi:10.1016/0167-8116(95)00005-m

Cited by 90 publications

(56 citation statements)

References 18 publications

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“…Cars are high involvement products in terms of interest, risk, symbolic and hedonic value (Lapersonne, Laurent, and Le Goff 1995). We utilize data for 39 major brands between 1999 and 2008 (comprising more than 97% of all automobile sales in the US market).…”

Section: Datamentioning

confidence: 99%

The Impact of Brand Equity on Customer Acquisition, Retention, and Profit Margin

Stahl

Heitmann

Lehmann

et al. 2012

Journal of Marketing

282

195

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the participants in the Tuck Marketing Seminar Series for their valuable comments and helpful suggestions. The Impact of Brand Equity on Customer Acquisition, Retention, and Profit Margin ABSTRACTThis paper examines the relationship between brand equity and customer acquisition, retention, and profit margin, the key components of customer lifetime value (CLV). We examine a unique database from the U.S. automobile market that combines 10 years of acquisition rate, retention rate, and customer profitability data with measures of brand equity from Young & Rubicam's Brand Asset Valuator (BAV) over the same time period. We hypothesize and find that BAV brand equity is significantly associated with the components of CLV in expected and meaningful ways. For example, customer Knowledge of a brand has an especially strong positive relationship with all three components of CLV. Interestingly, however, Differentiation is a double-edged sword. While it is associated with higher customer profitability, it is also associated with lower acquisition and retention rates. We also find that marketing efforts exert indirect impacts on CLV through brand equity. Simulations show that changes in marketing, or exogenous changes in brand equity, can exert important effects on CLV. Overall, the findings suggest the "soft" and "hard" sides of marketing need to be managed in a coordinated fashion.We discuss these and other implications for researchers and practitioners.

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Section: Datamentioning

confidence: 99%

The Impact of Brand Equity on Customer Acquisition, Retention, and Profit Margin

Stahl

Heitmann

Lehmann

et al. 2012

Journal of Marketing

282

195

View full text Add to dashboard Cite

show abstract

“…Sixth, decision constraints of consumers might have affected our results. For example, Lapersonne et al (1995) have shown that 17 percent of car buyers have a consideration set size of one. More recently, Lambert-Pandraud et al (2005) have revealed that the size of the consideration set is negatively affected by age.…”

Section: Limitations and Future Researchmentioning

confidence: 99%

Understanding brand and dealer retention in the new car market: The moderating role of brand tier

Verhoef

Langerak

Donkers

2007

Journal of Retailing

151

112

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Dealers may contribute to brand retention through their sales and service efforts. In this study we investigate the degree to which dealers contribute to brand retention and how this contribution is moderated by brand tier. To this end we distinguish between economy, volume and prestige brands. We also investigate how the effectiveness of dealer instruments to increase dealer retention differs across these brand tiers. We collected data on brand retention and dealer retention among consumers who recently purchased a new car. Our findings show that dealers selling volume brands are able to improve brand retention rates. In contrast, dealers of prestige and economy brands are unable to affect brand retention. In line with the notion of brand-dealer fit we also find that the effects of dealer extrinsic service quality and dealer payment equity on dealer retention differ between prestige, volume, and economy brands. Extrinsic dealer service quality has the smallest effect for dealers selling economy brands, while dealer payment equity is the most important determinant of dealer retention for these dealers.

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“…For example, certain channels can provide additional hedonic value during the search (Babin et al, 1994;Lapersonne et al, 1995), thus consumers may enjoy searching those particular channels. Bloch (1981), identified readiness to talk about cars as a dimension of consumer involvement, which implies a stronger use of interpersonal sources.…”

Section: Enduring Product Involvement and Use Of Information Sourcesmentioning

confidence: 99%

In what sequence are information sources consulted by involved consumers? The case of automobile pre-purchase search

Rijnsoever

Castaldi

Dijst

2012

Journal of Retailing and Consumer Services

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a b s t r a c tThis study investigates the relationship between involvement and use of multiple information sources in the case of pre-purchase information search for automobiles. We consider the moderating role played by the sequence in which information sources are consulted. We explore our theoretical framework on a sample of 1261 Dutch consumers using a combination of structural equation modelling and cluster techniques. The results lend support for the claim that more involved consumers search more, and across more, information sources. We also identify clusters of consumers based on their search strategies, as defined by the sequencing of information sources used. Finally, research and managerial implications are discussed.

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Consideration sets of size one: An empirical investigation of automobile purchases

Cited by 90 publications

References 18 publications

The Impact of Brand Equity on Customer Acquisition, Retention, and Profit Margin

The Impact of Brand Equity on Customer Acquisition, Retention, and Profit Margin

Understanding brand and dealer retention in the new car market: The moderating role of brand tier

In what sequence are information sources consulted by involved consumers? The case of automobile pre-purchase search

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