Articlegreen2002

Why Brands Grow

Allan L. Baldinger · Edward Blair · Raj Echambadi

78 citations0/0 files storedJournal of Advertising Research

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Consumer Market Behavior and Pricing Marketing and Advertising Strategies Consumer Behavior in Brand Consumption and Identification

Abstract

ABSTRACT What causes brands to grow over time? The article addresses this important question. Measures of market share, market penetration, customer loyalty, and price were gathered in two time periods, five years apart, for 353 brands in 21 categories of fast-moving consumer goods. We used these data to study share growth over time. Key findings include: (1) growth must be earned, even for brands that have been successful in the past; (2) increased penetration is the key to share growth, and especially dramatic share growth, for all types of brands; and (3) customer loyalty strongly leverages the effects of penetration. This paper extends upon work by Baldinger and Rubinson (1997) in demonstrating that the way to grow brands is via a combination of penetration and loyalty growth.

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1989The PIMS principles: Linking strategy to performance 1996Brand Loyalty: The Link between Attitude and Behavior 1997Is your brand's loyalty too much, too little, or just right?: Explaining deviations in loyalty from the Dirichlet norm

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