Abstract
A combination of logistic analysis and scanner data was the mainstream of marketing studies during the 1980 s and the 1990 s. In recent years, however, maintaining customers has been taken very seriously by lots of organizations, because consumers are beginning to build original values on brand choices. Consequently, in addition to the examination of short-term fluctuation, such as sales promotions, the management of brand equity has become increasingly important. The brand switch model proposed by Nakajima (1998) is one of the studies that deals with brand loyalty. This model describes the state change of loyalty using Markov chain. Therefore, it can analyze the influence of loyalty on the brand evaluation without assuming a steady market. The purpose of this article is to construct a brand choice model from the viewpoint of brand loyalty. First, the state change of loyalty after purchasing is described based on Nakajima (1998). Second, the choice probability of each brand is expressed using traditional brand choice models. This proposed model makes it possible for us to understand the influence of loyalty on the brand evaluation and choice probability of each brand simultaneously. We expect this model to make a contribution to brand analysis from multiple angles and to the planning of marketing strategies.
