Browse > Article

Brand Loyalty and Brand Switching Behavior in Car Insurance Market  

Kim, Heung-Kyu (Business Administration Major, Dankook University)
Publication Information
Journal of Korean Society of Industrial and Systems Engineering / v.29, no.3, 2006 , pp. 87-95 More about this Journal
Abstract
In this paper, an approach for analyzing brand loyalty and brand switching behavior in car insurance market is presented. A two-choice model by Blumen, et al. that uses Markov chain is adopted as a main technique for estimating brand parameters. Survey data have been collected through personal interviews with questionnaires. Following the application of the model to the data, it is found that there are five leading companies in car insurance market where the number of potential brand switchers is larger than that of brand loyal customers. Therefore, differentiation of this product along with the conversion of this low-involvement product to a high-involvement one could make car insurance stand out against a somewhat undifferentiated field of competitors.
Keywords
Car Insurance Market; Brand Loyalty; Brand Switching Behavior;
Citations & Related Records
연도 인용수 순위
  • Reference
1 Baldinger,A. and Rubinson,J.; 'Brand Loyalty : the Link between Attitude and Behavior,' Journal of Advertising Research, 36(6) : 22-34,1996
2 Givon, M.; 'Variety Seeking through Brand Switching,' Marketing Science,3(4) : 1-22,1984   DOI   ScienceOn
3 Kahn,B. E.,Kalwani, M. U.,and Morrison. D. G.; 'Measuring Variety Seeking and Reinforcement Behaviors Using Panel Data,' Journal of Marketing Research,3(5) : 89-100,1986
4 Mendenhall,W.,Wacheriy,D. D.,and Scheaffer,R L.; Mathematical Statistics with Applications,Duxbury Press,Belmont,1994
5 Reichheld,F. F. and Earl Sasser,W.; 'Zero Defections: Quality Comes to Services,' Harvard Business Review,68(5) : 105-112,1999
6 Blumen,I.,Kogan,M.,and McCarthy,P. J.; 'The Industrial Mobility of Labor as Probability Process,' Cornell Studies of Industrial and Labor Relations,6,1955
7 Oliver,T. L.; Satisfaction : A Behavioral Perspective on the Consumer,Irwin McGraw-Hill,Boston,1997
8 McCarthy,P. S.,Kannan, P. K.,Chandrasekharan,R.,and Wright,G. P.; 'Estimating Loaylty and Switching with an Application to the Automobile Market,' Management Science,38(10) : 1371-1393,1992   DOI   ScienceOn
9 Cobb-Walgren,F. J.,Ruble,C. A.,and Donthu,N.; 'Brand Equity,Brand Preference and Purchase Intent,' Journal of Advertising,24(3) : 25-40,1989
10 McAlister,L.; 'A Dynamic Attribute Satiation Model of Variety-Seeking Behavior,' Journal of Consumer Research,9(2) : 141-150,1982   DOI   ScienceOn
11 Jain,D.,Bass,F. M.,and Chen,Y. M.; 'Estimation of Latent Class Models with Heterogeneous Choice Probabilities: An Application to Market Structuring,' Journal of Marketing Research,27(1) : 94-101,1990   DOI   ScienceOn
12 Bass,F. M.,Givon, M. M.,Kalwani, M. U.,Reibstein, D., and Wright,G. P.; 'An Investigation into the Order of the Brand Choice Behavior,' Marketing Science, 8 (Fall) : 267-287,1984
13 Reichheld,F. F.; Loyalty Rules: How Today's Leaders Build Lasting Relationships,Harvard Business School Press,Boston,2001
14 Kapil,B.; 'Modeling Inertia and Variety Seeking Tendencies in Brand Choice Behavior,' Marketing Science,9(3) : 263-287,1990   DOI   ScienceOn
15 Colombo,R. A. and Morrison,D. D.; 'A Brand Switchgni Model with Implications for Marketing Strategies,' Marketing Science,8(1) 89-99, 1989   DOI   ScienceOn
16 De Chematony,E. and McDonald,M. H. B.; Creating Powerful Brands in Consumers : Service and Industrial Markets,Oxford: Butterworth and, Heinenmann, Woburn, 1998
17 Dyson,P.,Farr,A.,and Hollis,N. S.; 'Understanding,Measuring and Using Brand Equity,' Journal of Advertising Research,36(6) : 921,1996
18 Jeuland,A. P.,Bass,F. M.,and Wright,G. P.; 'A Multibrand Stochastic Model Compounding Heterogeneous Choice Probabilities Erlang Timing and Multinomial Choice Process,' Operations Research,28(2) 253-277,1980