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Path analysis reveals brand loyalty significantly impacts brand performance, indicating strategic importance for managers.
Path Analysis is used to analyze the direct and indirect influences of brand attitudes and brand loyalty on brand performance measures (shelf facings and price). A model concerning these relationships is developed and tested in two separate studies. Results indicate that brand attitudes are directly and indirectly related to shelf facings and price, with the indirect path occurring through brand loyalty. The results are shown to replicate adequately when using different samples of shoppers and products. The implications of the study are discussed in terms of their significance for managers.
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Arjun Chaudhuri (1999) studied this question.
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