Cross-Category Differences in Brand Loyalty: Investigating Category Characteristics with Bayesian Additive Models for Location, Scale, and Shape
(A2025-124758)

AUTHORS

Andreas Plank, University of Innsbruck; Oliver Koll, University of Innsbruck; Nikolaus Umlauf, University of Innsbruck

ABSTRACT

Beyond the intrinsic strengths or weaknesses of a brand, managers attribute high or low levels of loyalty to the category in which the brand competes. While within-category brand loyalty differences are intensively researched, cross-category variations lack empirical evidence. This study explores differences with respect to brand loyalty for 131 product categories based on more than 35.3 million purchases by 42,400 panelists over three years. Employing a Bayesian Additive Model for Location, Scale and Shape we find that brand loyalty relates negatively to the number of brands in the category, the number of category purchases, the share of purchases on promotion and the income of category-shoppers. A higher share of private label purchases and male category-shoppers positively relate to brand loyalty. This study contributes to our theoretical understanding of loyalty and enables managers to form realistic loyalty expectations depending on the product category where a brand competes.