Do you know why your customer chooses one brand over another? What would make them choose your brand?
This book offers a way to predict which brand a buyer will purchase. We look at brand performance within a product category and test this in different countries with very different cultures. This method is called the Predictive Brand Choice (PBC) model. It can predict a consumer's loyalty and choice. Our test shows that PBC can achieve a high level of predictive accuracy, in excess of 70 percent in mature markets. This accuracy holds even in the face of price competition from a less preferred brand.
PBC uses a prospective predicting method. This does not have to rely on a brand's past performance or a customer's purchase history for prediction. Choice data is gathered in the retail setting - at the point of sale. This makes the method described practical, useful and implementable for researchers and practitioners.