Striking a Balance between Brand “Popularity” and Brand Loyalty

The relationship between a brand's share of users and its loyal franchise is investigated. Using TGI data on consumer purchase habits covering 1,000 brands in 86 product classes, it is found that brands with a larger share of users have proportionately larger fractions of loyal buyers. These results are useful in the allocation of resources between the enlargement of a brand's base of users and the development of users' loyalty.