Second, in a previous study based o

Second, in a previous study based on a sample of
5,668 households, we (Cailleba and Casteran, 2009)
find that the French FT coffee market contains three
different segments: (1) exclusive traditional consumers,
(2) exclusive FT coffee consumers, and (3) mixed
consumers. The sizes of these segments are very dissimilar:
93.5%, 0.5%, and 6%, respectively. The segments
also exhibit varying levels of involvement, as
measured by the price they pay (Laurent and Kapferer,
1985). That is, the segments pay on average 2.85, 3.54,
and 2.7e for their coffee purchases, respectively. The
third segment clearly is interested in low prices; so FT
coffee purchases are a function of price promotions for
these consumers. In turn, we expect exclusive FT
consumers’ loyalty to be stronger than exclusive traditional
consumers’ loyalty. For the mixed consumers,
we have no expectations about FT coffee, other than
their opportunistic purchases based on price. In general,
the third segment’s loyalty to traditional (less expensive)
coffee should be stronger than their loyalty to the FT
coffee. To measure commitment and test H2, we use
expected inactivity dates as measured by the models.