Brand equity of defectors and never boughts in a business financial market

Abstract

Buyer acquisition is important for any supplier looking to maintain or expand its customer base. This study uses a brand equity perspective to compare the future customer potential of those who used the brand in the past but stopped (defectors), with the potential of those who have never bought the brand. On the surface, both groups possess the same propensity to consider the brand for future purchase. However, the underlying reasons for these propensities differ. Defectors hold both positive and negative information about the former brand. In contrast, those who have never bought the brand possess largely neutral opinions. The results imply that managers should consider treating these two groups separately because they require different acquisition strategies.