Has the price change impacted consumer loyalty?

Date of publication: October 10, 2004

Author: Vojtech Spacil

Abstract:

This paper describes the consumer behaviour in the cola market. The consumer's reaction to price changes was the goal of the research study. Based on eight hypothetical buying situations represented by offering the same brands of cola drinks at different prices, the study examined the level of loyalty. Through the reaction to price gaps among four selected brands, consumers were divided into three main groups: loyal consumers, consumers who duplicate and disloyal consumers. This contribution also defines the price thresholds for the switching process in the case of duplication. The impact of price level on loyalty is also a subject of discussion.

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