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The Short- and long-term effects of measuring purchase intentions on repeat purchasing (RV of 2003/55/MKT)

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This study examines the short- and long-term effects of measuring purchase intentions in the context of repeated purchases. Using longitudinal data from a pre-post field experiment, the authors compare the incidence, timing, and profitability of online grocery purchases made by a cohort of consumers whose purchase intentions were measured with those of similar consumers whose intentions were not measured. For the first three months after the survey, the authors find that measuring intentions 1) increases the likelihood of repeat purchase incidence, 2) shortens the time until the first repeat purchase, and 3) increases the profitability of the customer for the firm. Over the longer term, however, the mere-measurement effects on the incidence and timing of repeat purchases decay rapidly, as consumers in the control group catch up with those in the survey group. In fact, nine months after the survey, the number of repeat purchasers is the same in both groups. Still, the early gains in customer profitability do not disappear over time because the accelerated first repeat purchases of the first three months lead to faster subsequent purchases in the remainder of the period.

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en

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application/pdf

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http://flora.insead.edu/fichiersti_wp/inseadwp2003/2003-87.pdf

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