Note—A Brand Switching Model with Implications for Marketing Strategies

A two-class “Hard-Core Loyal” and “Potential Switcher” latent model for the analysis of brand switching data is proposed. Some previously unpublished automobile data will be presented and analyzed along with another data set for frequently purchased packaged goods. We show how our simple model can be easily estimated using a standard log-linear modeling approach. We hope that the approach, examples, and managerial implications presented will stimulate increased collection and analysis of switching data in the areas of durables and services. In fact our model may well be more appropriate for these two aspects of marketing than it is for consumer packaged goods—which up to now represents almost all of the published work using switching data.