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In this study, the authors examine one more aspect of the elderly consumer’s brand loyalty: resistance to brand switching. This study claims that elderly consumers are not only more likely to repurchase but also actively resist switching brands once they have established a favorite brand. This study looks at the unique cognitive psychology of elderly consumers likely to cause this behavior. A better understanding of such behavior can guide efforts of firms either trying to retain their existing consumers or attempting to convert customers of rival brands to their own brands.
Journal of Business & Economics Research December, 2010 Volume 8, Number 12
Resistance To Brand Switching:
The Elderly Consumer
Komal Gyani Karani, Lamar University, USA
Katherine A. Fraccastoro, Lamar University, USA
In this study, the authors examine one more aspect of the elderly consumer’s brand loyalty:
resistance to brand switching. This study claims that elderly consumers are not only more likely to
repurchase but also actively resist switching brands once they have established a favorite brand.
This study looks at the unique cognitive psychology of elderly consumers likely to cause this
behavior. A better understanding of such behavior can guide efforts of firms either trying to retain
their existing consumers or attempting to convert customers of rival brands to their own brands.
Keywords: Brand switching; marketing; elderly consumers; quality of life
arketing firms have been long interested in retaining existing customers. It is well known that
acquiring a new customer costs much more than retaining existing ones. Therefore it makes sense
for firms to focus on their loyal customers and nurture those relationships. The elderly consumers
have long been considered to be more prone to repurchasing known brands. With the increase in the elderly
population due to the aging baby boomers, the elderly consumer group will become increasingly important to
businesses. This paper examines the likelihood that elderly consumers are more resistant to brand switching than
younger consumers and investigates the antecedents into the relationship.
Seniors typically have more disposable income than their children (Polyak 2000). At over $7 trillion,
seniors control 70 percent of the net worth of American households (Age Wave, LLC, 2000). With the first baby
boomers moving into their mid-60s, senior citizens are the fastest growing demographic group in the USA. In 2010
there are roughly 50 million people in the USA age 65 and over, and by 2030, this figure is expected to rise to 70
million (Polyak, 2000), or one in every five persons (Federal Interagency Forum on Aging Related Statistics, 2000).
Brand loyalty has been usually measured by purchase behavior. For durables, purchase of the same brand
twice has been considered evidence of loyalty (May, 1967). Brand loyalty for packaged goods has been measured by
a buying unit‟s purchases going to one brand over a given period of time (Cunningham, 1961), sequences of brand
purchases (Brown, 1952) and the number of different brands bought.(Farley, 1964) However, studies have also
taken two different viewpoints of how the concept of brand loyalty can be applied. In one study of packaged goods,
households were classified as brand loyal if they said they bought the same brand regularly and that they would go
to another store or postpone purchase rather than buy another brand if their brand was out of stock. (Cunningham
Scott, 1967) In a study of a food product, attitude toward a brand and the proportion of total purchases going to it
were combined to measure loyalty (Day, 1969). These studies indicate that repurchase is not a sufficient measure of
brand loyalty. A more meaningful measure would be buyer resistance to persuasion to switch brands (Newman &
Werbel, 1973). The elderly consumer‟s resistance to brand switching has received little attention in the literature.
This study seeks to explaining the relationship between age and brand switching by taking brand loyalty a step
beyond brand repurchase and considering other factors which are conducive to brand switching and how the elderly
consumers are influenced by them.
Journal of Business & Economics Research December, 2010 Volume 8, Number 12
Two major factors must be considered when evaluating resistance to brand switching among the elderly
consumer: Brand switching and the unique cognitive psychology of the older consumer which makes them less
susceptible to brand switching and therefore more brand loyal.
Gerontology and psychology literature define „elderly‟ differently from marketing literature. Most
marketing studies used the term to describe all consumers over the age of 50. On the other hand, gerontology and
psychology studies define „elderly‟ as older than age 60 or 65. This study will use Schaie‟s (1996) categorization of
the elderly, distinguishing “young-old” (ages 60-74) from “old-old” (age 75 and older). It is predicted that the
“young-old” category of consumers will be closer to the middle-aged (ages 40-59) segment than the “old-old”.
Since the highly-educated baby boomers generation will soon be forming the bulk of the young-old category, this
distinction is important. The baby-boomers generation is unlike previous generations in that they are healthier, better
educated and wealthier as they near retirement. Therefore this study defines elderly consumers as belonging to the
“old-old” age group or 75 years and older and studies how they are different from those younger than 75 years.
Marketing literature shows a variety of reasons for brand switching in different product and service
categories. However most of the work done is industry specific making generalizability difficult. Also, some studies
cite conflicting reasons given by customers for their switching. Some of the reasons commonly given by customers
of most categories are as follows (Keaveney, 1995):
1. Price. Price is one of the top reasons for many consumers to switch brands. In high price product
categories, customers switched when prices exceeded internal reference prices. Prices could be considered
too high relative to some internal normative price or too high relative to the value of the service or goods
received, or too high relative to the competition. In case of price increase, customers compared the new
increased prices to the prior reference price causing them to switch services or products. Customers‟
perception of unfair prices if they feel the price was unexpectedly high or greatly exceeded a quoted price
also causes them to switch.
2. Service or Product Failure. This includes mistakes, billing errors, and service catastrophes.
3. Inconvenient Hours or Location of store. Customers can switch if the store switches location or hours
making it inconvenient or inaccessible.
4. Competition. This involves customers switching because of competitor brands offering a better product or
5. Ethical problems. Four sub categories of unethical behavior cited by customers as reasons for switching
are: dishonest behavior, intimidating behavior, unsafe or unhealthy practice, and/or conflicts of interest.
6. Involuntary switching. This occurs when the preferred brand is „out of stock‟ in the store. The customer
can respond by switching stores, postponing the purchase or switching brands.
7. Sales promotions. Several research studies have been carried out to study the effect of sales promotions.
A key result is that the majority of the sales promotion elasticity (approximately 74 percent on average) is
attributed to brand switching and the remaining is attributed to timing acceleration and quantity increases
(Van Heerde et al, 2003).
Baddeley‟s theory of working memory explains that to solve a problem, we rely on working memory, a
critical component of an individual‟s information processing system consisting of a limited capacity work space that
can be divided between storage and processing functions. Although limited working area presents a constraint
regarding the amount of information a person can process while solving a problem for everyone, elderly consumers
face an especially limited working memory. This may lead to unreliable structures because the products of earlier
processing can be lost. This age-related decline in working-memory capacity seems to constrain performance
Journal of Business & Economics Research December, 2010 Volume 8, Number 12
especially on unfamiliar tasks (Salthouse, 1991). However when elderly adults solve familiar problems, they often
perform as well as or better than younger adults (Charness, 1981). Although working-memory capacity diminishes
with age, older adults can learn to compensate for such loss when they are familiar with the problem task (Smith and
Moschis, 1990).
Four possible mechanisms may explain the effects of aging on consumer behavior (Lambert-Pandraud et al,
2005): Biological Aging, Cognitive Decline, Socioemotional Selectivity, and Change Aversion. Biological Aging
indicates that physical capabilities decline with age; however, clear, biologically based slowdowns occur in daily
social life only after an advanced age of 80 years or more. A majority of people between ages 60-74 report no
serious problems relating to mobility. It‟s only after the age of 80 that more than half report that they shop only
occasionally due to problems walking or driving.
Cognitive Decline suggests that older consumers‟ memory limits their consideration set to known or
previously owned brands because they are no longer able to evaluate all the complex options available in minute
detail. Research in cognitive psychology shows how cognitive capacities such as working memory decline with age.
Working memory mediates the encoding of information in long-term memory and the conscious retrieval of recent
events. From the age 60, people may also experience a reduction in their explicit memory which is what makes it
possible to retrieve pieces of information and their sources consciously. Sorce (1995) suggests this is why older
people often rely on store loyalty or an advice seeking heuristic. Also, information that is well learned and/or highly
practiced also appears to be spared by aging. This may be another explanation for store and brand loyalty.
Socioemotional selectivity claims that older people who perceive their time horizon as limited place greater
emphasis on feelings and emotions, such that their interest in new information declines. They give priority to close,
well-known emotional contacts over new informative ones (Isaacowitz, Charles and Cartensen, 2000). This theory
can provide yet another explanation why older people prefer to stick to their tried and tested brands and stores. This
also explains why word -of -mouth from a trusted source will be more persuasive than any other form of publicity.
Change Aversion concerns how the elderly deal with changes. Elderly consumers show an aversion to
change even if they are not particularly satisfied with their current state. Botwinick (1966) suggests two hypotheses
to explain this. First, because of their intellectual decline, older people may avoid making decisions. Second, older
people may avoid the risk that is associated with a bad decision, especially one that may lead to a financial risk.
Thus, the purchase behavior of older consumers could be the consequence of change aversion, which could lead
them to resist switching brands.
However, cognitive neuroscience shows that older adults often employ compensatory mechanisms which
make up for some faculties which may be declining. Sometimes older adults may recruit additional resources to
bolster their limited cognitive abilities and/or adopt different strategies than younger consumers to process
information (Yoon et al, 2005).
While little research has been conducted to assess consumption by the elderly with regard to quality of life,
the issues concerning quality of life may also impact the elderly consumers‟ resistance to brand switching.
Difficulties elderly consumers encounter with their daily lives may impact their life satisfaction and their ability to
purchase their brand of choice. Factors related to quality of life such as family, friends, self, residence, health, fun
and enjoyment, money, and job may affect their ability to participate in activities such as shopping as well as their
purchase habits. Karatas and Duyan (2008) found that life satisfaction levels for consumer that have difficulty
participating in activities that require physical effort is lower than those who do not have difficulty participating.
Likewise, they found that life satisfaction levels of elderly consumers who have financial difficulties are lower than
those who do not have financial difficulties. Given that ability to shop and the financial ability of the elderly
consumer may constrain their purchase choices, it is likely that consumers with lower quality of life are likely to
switch brands more than those with higher quality of life.
Journal of Business & Economics Research December, 2010 Volume 8, Number 12
Price Sensitivity of the elderly consumers has been studied with varying and conflicting results over the
years. Mason and Bearden stated in 1978 that elderly shoppers tend to be economy minded and shop alternative
sources to find the best price. But a later study showed by Lumpkin and Greenberg (1985) showed that elderly
consumers actually placed less emphasis on price and sales than younger consumers. Most subsequent studies have
reinforced this viewpoint. One reason for this may be that prior to the 1980s, the older consumer was viewed as an
underprivileged segment of the population, having limited economic resources (Moschis, 2003). If this view was not
inaccurate, it is possible that elderly consumers in that time period were indeed more price sensitive. Since then, this
segment has become economically stronger having even more disposable income than their children. This could
result in reduced price sensitivity. Another reason could be that of risk reduction. The elderly consumers would
rather accept some degree of price increase of a known and liked brand than take on the risk associated with trying
out a new product.
H1: Elderly consumers are less likely than younger consumers (under 75 years of age) to switch brands because
of a price increase.
Another leading cause for brand switching is attractive promotions being offered by competitors. However
different studies show that sales promotions have limited appeal for the older consumer. For example, in a study of
elderly apparel customers, Dodge (1958) found that 65% of the sample said they would not wait for a clothes sale to
make their purchases. The reasons for this may be similar to the ones listed for the mature consumer‟s reduced price
H2: Elderly consumers are less likely than younger consumers to switch brands due to promotions by
A service or product failure makes it a risky repeat purchase. In the case of elderly consumers who are
significantly more risk averse than younger consumers, that is more likely to be an important consideration in their
purchase behavior. This is not because of „cautiousness‟ as is often assumed. Elderly consumers evaluate risk in a
similar manner as younger consumers. However, they are more likely to avoid making decisions which cause
internal conflict or dissonance (Yoon et al, 2005). Other factors which have not yet been studied include the possible
role of affect in decision making. Elderly consumers are known to be particularly influenced by affect when making
choice decisions. Work by Bechara et al, (1996) suggests that affective reactions to experiences with an object drive
the learning that subsequently guides choices. So, if the product or service failure and the subsequent recovery
efforts were such that they created a negative affective response, it is unlikely that the elderly consumer will want to
give the product another chance.
H3: Elderly consumers are more likely than younger consumers to switch brands because of a service or
product failure.
In an Australian study, elderly consumers rated carrying equipment and product layout as two of the top
three most relevant issues. Decreased muscle mass and frailty could be reasons why convenience of product layout
and easy accessibility is considered to be so important to elderly consumers (Pettigrew, Mizerski & Donovan, 2005).
Store lighting and temperature were also very important to this segment of customers (Mason and Bearden, 1978).
Barnes and Peters (1982) cited convenience as a major factor in deciding where to shop. Some components of
convenience are fast checkout and package carryout (Lambert, 1979), ease of entrance and exit (Mason and
Bearden, 1978), and knowledgeable sales personnel (Gelb, 1978).
H4: Elderly consumers are more likely than younger consumers to switch brands because of inconvenient
location or layout of stores.
Age is negatively correlated with fluid intelligence (i.e. intelligence required for new problems and
situations), but crystallized intelligence (i.e. intelligence based on prior experience and learning) remains intact
(Salthouse, 1991). The decline of fluid intelligence passes through performance thresholds. As noted before,
Journal of Business & Economics Research December, 2010 Volume 8, Number 12
working memory also declines with age. Therefore, the decline in working memory and fluid intelligence should
decrease the number of brands that older consumers consider and should increase their tendency to purchase familiar
options over new brands, especially when evaluating them requires extensive problem solving.
H5: Elderly consumers are less likely than younger consumers to switch brands because of new product
introductions by competitors where comparative analysis of options becomes cognitively difficult.
Older people share a sense of moral responsibility in their purchase behavior, and as a community are
willing to engage in affirmative purchasing and boycotting (Carrigan, Szmigin & Wright, 2004). One possible
reason for this has been given by Titus and Bradford (1996) is that of time constraints. Younger consumers are
prevented from being as sophisticated and ethical consumers as they would like because time constraints prevent
them from seeking and absorbing the information required for careful analysis of the marketplace‟s offerings. On the
other hand, older consumers have fewer time constraints due to retirement, empty nests etc. and may be more likely
to absorb and act on ethical considerations. Also, „green‟ products are often more expensive and since the older
consumers are indicated to be less price conscious and have more disposable incomes than younger consumers, they
may consider the additional expense more acceptable (Bainbridge, 1998). Also age, wisdom and experience as
consumers have been shown to create more discriminating older buyers which may translate into ethical behavior
(Corlett, 1998; Cowe & Williams; Silvers, 2001). It is not known yet if this arises from a sense of self actualization
or a desire to leave the world a better place for their children/grandchildren.
H6: Elderly consumers are more likely than younger consumers to switch brands because of ethical concerns
with the manufacturing or retailing firm.
Sloot et al (2005) carried out a study to study the variables present in a situation where the desired product
was out of stock. They found that the elderly consumer was more likely to switch stores rather than switch brands if
their preferred brand was out of stock. One reason may be that elderly consumers have more spare time to shop and
have fewer time constraints against switching stores to look for the brand of their choice. An older research by
Peckham (1963) also found that older shoppers were less inclined to accept a substitute brand than younger ones. He
found that 48% of shoppers over 50 years of age stated that they would not buy a substitute when the brand they
wanted was unavailable as compared with 41% in the 25-50 age range and 38% in the under 25 years bracket. This
study treated the entire age-range of over 50 years as one category. It seems reasonable to assume that the age range
of 75 years and above will be even more resistant to brand substitution.
H7: Elderly consumers are less likely than younger consumers to switch brands because of temporary out of
stock situations.
The mature market is open to new products but not because it is „trendy‟ or is being used by all their peers.
The older consumers have knowledge based on experience helping them form instant perceptions of the product or
service being offered. Rather than peer influence, they are more likely to try a product or service which satisfies a
real, personal need (Leventhal, 1997).
H8: Elderly consumers are less likely than younger consumers to switch brands due to peer influence.
Several of the hypotheses listed contain issues that are related to quality of life. Quality of life measures
assess the impact of one‟s family, friends, self, residence, health, fun and enjoyment, money, and job on his/her
satisfaction with life (Roberts and Clement, 2007). When elderly consumers are having difficulty with specific
aspects of their lives, it may affect their ability to remain loyal to certain products. For instance, if an elderly
consumer is having physical difficulty, it may impact their ability to shop for the products they would prefer. If an
elderly consumer is having financial difficulty, they may feel the need to switch to a lower priced product.
H9: Elderly consumers are more likely than younger consumers to switch brands due to lower quality of life.
Journal of Business & Economics Research December, 2010 Volume 8, Number 12
It is now being widely accepted that the retiring boomers will be one of the most influential segments in the
market. Not only do they have more disposable income, they are also more brand loyal than the younger consumers,
making them ideal customers. Their loyalty is not limited to repurchase behavior of their preferred brands. They
are actually more resistant to brand switching which means it will be more difficult for competing firms to lure them
away. However, this study attempts to show that they cannot be taken for granted since they have strong preferences
for certain aspects of their shopping experience. By looking at which aspects affect them strongly enough to cause
them to switch away from their preferred brands, this study indicates which factors firms need to assess more
Komal Karani is currently an assistant professor of Marketing at Lamar University, Beaumont, Texas. She is
completing her PhD from LeBow College of Business, Drexel University, Philadelphia. Her research interests
include services marketing, satisfaction and quality, aging consumers and consumer behavior. She has published on
these issues in conference proceedings such as Academy of Marketing Science.
Katherine Fraccastoro received her Ph.D. from Louisiana State University and is currently an associate professor
of Marketing at Lamar University, Beaumont, Texas. Her research interests include consumer behavior issues
related to product pricing, cultural acceptance issues, entrepreneurship, and marketing education. She has published
several referred papers on these and related issues in conference proceedings and journals such as the Journal of
Consumer Behavior, Marketing Letters, Journal of Higher Education Policy and Management, and
Communications of the Association for Information Systems. Currently Dr. Fraccastoro is the William E. and
Katherine F. Fouts Faculty Scholar in Business.
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Journal of Business & Economics Research December, 2010 Volume 8, Number 12
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... Using such a positioning will help elderly to recognize that products offer benefits that match with their needs and wants, and will more likely lead to the formation of consumption intentions. Research findings claim that elderly consumers are not only more likely to repurchase but also actively resist switching brands once they have established a favourite brand (Karani & Fraccastoro, 2010 ...
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The proportion of older adults in the population is significantly growing. Based on Eurostat data in the European Union, almost one-fifth of the population was over 65 years in 2018. Their relative proportion in the population is expected to reach 28.5% until 2050. According to WHO data, CNDs (primarily cardiovascular diseases, cancers, chronic respiratory diseases and diabetes) are the leading cause of death (71% in 2016) worldwide. Therefore, the relationship between healthy ageing and nutrition has become an emerging scientific and social issue. Functional food products with a nutritional composition that may reduce the risk of diet-related diseases or enhance physiological functions could play an important role in disease prevention and mitigation. Consumers often use the ‘healthy food’ terms in relation to functional food products, although this term is not correct from neither academic, nor a legal point of view. The functional food market is one of the fastest growing area of the food industry. However, new products had a high failure rate, because most of them were not preceded by a deeper exploration of consumer needs. Although, increasing the well-being of older consumers has been a key consideration since the emergence of the concept of functional food, only few consumer research studies are available which focus on senior consumers. The present study is based on two quantitative consumer samples: a nationwide-representative sample (N = 1002; representative for the total adult Hungarian population in terms of sex, age and NUTS-2 geographical distribution according to the latest official census data) and a specific older adult large sample (N = 907; 60 years or over) were collected. The research followed an explorative approach focusing on the central areas of functional food development with supply chain approach. Hence, it covers nutrition claims, carrier types, health concerns, the acceptance of functional food for disease prevention and mitigation, other factors influencing the purchase decision, consumer knowledge, attitudes and socio-demographic factors. The research included a large number of variables from which factors were composed with PCA for better interpretation. Among older adults heterogeneity was identified in the preference of nutrition claims listed in the Regulation (EC) No. 1924/2006, therefore, cluster analysis was conducted to form consumer segments. The present study contributes to literature with practical findings to support product development and preventive public health programmes. The findings of the representative survey highlight statistically significant differences in the preferences of older adults compared to other age segments. Based on the results, older adults tend to define the ‘healthy food’ term from a food safety point of view, while younger respondents described this category from nutritional aspects. Senior consumers generally accept functional foods. In case of most of the knowledge-related questions, younger respondents had a higher level of knowledge. Senior consumers preferred most of the listed nutrition claims more, especially to the following ones: increased vitamin, mineral, protein and fibre content. Older adults also preferred products with lower salt and sugar content, which were less relevant for other age groups. Products of fruit and vegetable origin and fish were distinguished as carriers of functional traits. Compared to other age groups, older adults accept products of animal origin (especially dairy products and honey) on a higher level. Most of the listed product benefits (e.g. domestic origin, small-scale product) were preferred by the older adults to a higher extent. It indicates that the combination of these product parameters with health and nutrition claims on the product label could bear a recognised value for senior consumers. The results of the present study indicate that the Hungarian population is mainly concerned about the following health problems: vision deficiencies and disorders; dental problems; and heart and cardiovascular diseases. According to the responses, functional foods were the most suitable for disease prevention and mitigation in case of digestive problems, high cholesterol level, lactose sensitivity and gluten sensitivity. In the vast majority of the cases where significant differences were detected, older adults were more concerned about the certain health problem. After filtering the sample only for the concerned consumers, less significant differences between age groups were detected. Where significant differences were found, younger and middle-aged adults are more likely to accept food as a solution to disease prevention and mitigation. According to these findings, health concerns are more influential in the acceptance of functional foods for disease prevention and mitigation than the consumers’ age. The results of the analysis of nationwide representative survey highlighted the importance of considering the well-being of older adults (especially consumers concerned about health problems) during product development. This investigation might be used for product differentiation between age groups, while explored differences between preferred shop types, communication channels and other factors influencing the purchase decision could also support the positioning of messages related to product promotion or intervention. The analysis contains a detailed data set about possible carrier types and nutritional claim combinations that might be used for subsequent academic studies and for field experts as well. According to the results of the analysis of the specific older adult sample, senior consumers primarily preferred claims indicating added nutritional value, while reduced nutritional content was preferred less. Three segments were identified and characterised based on their preference of nutrition claims: ‘nutrition-oriented’ (33%), ‘added nutritional value oriented’ (46.5%) and ‘nutrition sceptic’ (20.5%). Previous studies identified scepticism among older adults about functional food products. However, the results of the present study suggested that scepticism was not general among older adults. Eighty percent of the senior consumers could be an appropriate target group for functional food market actors, since 33% was generally nutrition-oriented, while 46.5% rather searches added value. Only one-fifth of senior consumers found to be resilient against functional food value offers. As an unexpected finding, age, income level, education and location of residence did not differentiate the groups significantly. However, the sex of the respondents was found to be significant factor: men were present in the highest proportion in the ‘nutrition sceptic’ segment. Older adults in the ‘nutrition-oriented’ segment were concerned about presented health problems at the highest rate in each case except in the case of digestive problems, where the ‘added nutritional value oriented’ segment demonstrated higher level of concerns. Consumers in the ‘nutritional sceptic’ group were the least concerned about the listed health problems. The proportion of overweight respondents was the highest in the ‘nutrition-oriented’ group, while the proportion of obese respondents was the highest in the ‘added nutritional value oriented’ segment. Significant differences in the acceptance of functional foods as a solution to disease prevention and mitigation were observed only in few cases. For heart and cardiovascular diseases, dental problems and digestive problems, the results suggested that the ‘nutrition-oriented’ segment had the highest rate of acceptance, followed by the ‘added nutritional value oriented’ segment, while the ‘nutrition sceptic’ consumer group was characterised by the lowest level of acceptance. The results suggest that older adults primarily pay attention to their nutrition due to existing health problems instead of prevention. To overcome this barrier, several practical findings were presented in terms of carrier types, attitudes, socio-demographic characteristics and other factors influencing purchase decisions. Considering that the prevention of CNDs and the well-being of older adults are serious social challenges, there are tasks for both the food business operators in development of accessible functional food products for older adults and policy makers in forming more effective preventive public health programmes to promote healthy ageing. Further studies focusing on older adults are needed to investigate possible product attribute combinations that meet the expectations of specified segments of senior consumers.
... Selain itu para lansia juga memiliki kecenderungan terikat dengan suatu merek. Jika lansia sudah memiliki merek favorit, maka terdapat kecenderungan bagi mereka untuk menolak merek-merek baru (Karani & Fraccastoro, 2010). Hal ini menyebabkan usaha promosi untuk produkproduk lansia tentu saja memiliki kekhasan yang dapat dikaji lebih lanjut. ...
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Penelitian ini bertujuan untuk mengetahui upaya komunikasi pemasaran yang dapat menembus pasar lansia, dimana akibat degenerasi para lansia sulit untuk melakukan komunikasi namun tentunya masih memiliki kebutuhan pribadi yang perlu dipenuhi. Salah satu kebutuhan dari lansia adalah protesa gigi untuk membantu para lansia mengkonsumsi makanan sehari-hari. Di kota Surabaya terdapat jasa tukang gigi Hoe Sioe Shen yang telah melayani jasa pembuatan protesa gigi selama 76 tahun. Penelitian ini dilakukan menggunakan metode studi kasus yang menjabarkan komunikasi pemasaran yang dilakukan oleh Hoe Sioe Shen. Hasil penelitian ini menyatakan bahwa komponen promotional mix primer atau yang paling efektif pada perusahaan Hoe Sioe Shen adalah word of mouth (WOM), personal selling, dan sales promotion yang didukung dengan komponen lainnya dalam menjalankan komponen primer yaitu public relations. Namun Hoe Sioe Shen tidak melakukan beberapa komponen seperti advertising, online marketing, dan direct marketing walaupun terdapat peluang untuk dilakukan.
... When consumers are satisfied with the brand, this creates resistance to brand switching (Lam et al., 2010). Consumers, especially the elderly ones, are likely to rebuy and actively resist switching brands (Karani and Fraccastoro, 2010). When consumers are addicted to their favorite brand, then they buy more products, attend more brand events. ...
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This research explores the role of materialism, and social comparison to brand addiction in relation to compulsive buying. A structural equation modeling was used to analyze data through partial least squares by collecting online data in Vietnam. The research findings explain social comparison is an antecedent leading to addictive behavior. Materialism mediates and increases the addictive behavior when consumers are significantly impacted by social comparison. In addition, brand addiction leads to word-of-mouth and willingness to pay premium price when consumers are set under social comparison and materialistic tendency. The managerial and theoretical application is also provided in this research.
... Increased prevalence of telecommunication usage has enabled convenience among customers to switch between competing brands shall expectations are not fulfilled. Herewith, accounted factors would include crossover features, cost involved, and possibility of losing contact information during the switching process (Oyeniyi & Abiodun, 2010); call rates and network coverage (Sathish, Kumar, & Jeevanantham, 2011); as well as customer service, quality of service, and usage costs (Karani & Fraccastoro, 2010;Lien, Cao, & Zhou, 2017). Particularly, the current study evaluates influence of product involvement, brand image, perceived value, transaction convenience and access convenience on propensity to leave and customer loyalty in the Malaysian mobile service industry. ...
Service convenience has undoubtedly gain substantial recognition for both goods and service industries within recent years towards forging an enduring competitive advantage. Considering heightened market expectations in the mobile service industry, importance of capitalizing on relevant elements is highlighted to retain, further strengthen users’ loyalty. Technological advancement has then created opportunity for differentiation in the area of reachability, particularly on the transaction convenience and access convenience of specified mobile service. Alongside product involvement, brand image and perceived value as hypothesized predictors of users’ allegiance towards a mobile service, this study explored factors which influence customers’ loyalty and propensity to leave within the mobile service industry. Convenience sampling approach was hereby implemented, following distribution of close-ended questionnaires among 400 respondents. Data analysis was then conducted through employment of the SEM AMOS software. As such, results obtained discovered product involvement, perceived value, transaction convenience and access convenience being direct predictors of both dependent variables; with the exception of brand image which doesn’t affect propensity to leave, despite being a significant antecedent to customers’ loyalty. Additionally, transaction convenience was revealed as an active moderator to the impact of perceived value on (i) customer loyalty, and (ii) propensity to leave. Centred on the transactional aspect in the mobile service industry, more effective service marketing strategies can be developed through gained insights from this research, with excelling sustainable customer retentions. © 2020, Asia Business Research Corporation. All rights reserved.
This study explored factors influencing customers' perceptions and behaviors under the fact of low e‐commerce adoption rate in specialty retail. This research uses e‐commerce service and switching costs to determine customer behaviors in the e‐commerce of specialty retail. The results showed that e‐commerce client interface and technology have no effects on customers' acceptance of the new business relationship online, e‐commerce client interface increases customers' acceptance of setup costs, and also, e‐commerce technology increases customers' acceptance of setup costs and learning costs in specialty retail. This study found important factors affecting customers' perceptions and behaviors in the e‐commerce of specialty retail.
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Destination loyalty is a key indicator of the competitiveness of tourist destinations. Rural summer health leisure vacations for urban elderly (RSHLVUE) tourists span a wide range of ages. Destination operators need to understand the loyalty formation mechanisms of different aged tourists. RSHLVUE tourists were divided into a low-aged group (LA) and a high-aged group (HA) to examine and modify the hypothesis of the relationship between perceived value, tourist well-being, place attachment, and destination loyalty based on affect, behavior, and cognition (ABC) theory. The test results of the measurement model indicate that the HA showed stronger responses in terms of cost value, sense of meaning, and place dependency. The formation mechanism of destination loyalty for the LA is tourist well-being → perceived value → place attachment → destination loyalty, and for the HA is perceived value → tourist well-being → place attachment → destination loyalty. The findings deepen the understanding of destination loyalty among elderly leisure vacation tourists and can guide RSHLVUE destination managers to enhance destination competitiveness.
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The Slovak population, like the population in other European countries, is aging. The population in the older age groups is growing by increasing the average age of life. Even in old age, people are still active, they like to actively participate in social and economic activities, and they carry out various hobby activities, which preserve but also increase the quality of their personal lives. Seniors over the age of 50+, referred to as the silver generation, are important consumers of a wide range of services, including the growing retail services. These are the reasons why an increased attention needs to be paid to them. The aim of the paper is to know the shopping behavior of the silver generation in relation to the specificity of the spatial structure of retail facilities. The research was carried out in the Slovak city of Nitra. This West Slovak city is known for its history, university education facilities and currently especially the automotive industry, which has significantly contributed to improving the economic conditions of its inhabitants. The shopping types of senior respondents were obtained by questionnaires and evaluated by a comparative analysis based on a description. The results of the research show that the behavior of the current silver generation is changing in comparison to the previous one. The closest relationship between the seniors’ traditional way of shopping and the traditional mixed retail facilities in the central part of the city has not been confirmed. The statistically closest relationship between the shopping types of seniors was confirmed in the residential districts where the retail facilities consist of large shopping centers, supermarkets and hypermarkets with a concentrated offer. Senior shopping is changing significantly and is in line with modern trends. New forms of retail supply change the usual patterns of senior shopping behavior.
Two different measures of brand loyalty are employed in an analysis of survey data by MCA in which six hypotheses are tested. A measure based on brand deliberation as well as brand repurchase appeared to yield better results than did repurchase alone.
Is Mrs. Consumer a satisfied grocery store customer? Can she get the specific brands, sizes, and colors she wants? What does she do when the brand, size, or color is out of stock-does she accept a substitute, or defer purchase until the next shopping trip? This article-based on a survey by the A. C. Nielsen Company, the results of which were presented at the 1962 annual meeting of the Grocery Manufacturers of America-discusses the potential loss of business to manufacturers and retail stores brought about by out-of-stock at the store level.
This article postulates that consumer decisions to repurchase or change a currently owned automobile make are determined by the sequence of the consumer's previous ownership experiences with present and past makes. The hypothesis is supported by analysis of a sample of new car purchasers.
Customer switching behavior damages market share and profitability of service firms yet has remained virtually unexplored in the marketing literature. The author reports results of a critical incident study conducted among more than 500 service customers. The research identifies more than 800 critical behaviors of service firms that caused customers to switch services. Customers' reasons for switching services were classified into eight general categories. The author then discusses implications for further model development and offers recommendations for managers of service firms.