Representing excess loyalty on the double jeopardy line
Date
2005
Authors
Habel, C.
Rungie, C.
Li, F.
Editors
Sharon Purchase,
Advisors
Journal Title
Journal ISSN
Volume Title
Type:
Conference paper
Citation
Book of Abstracts and Program: ANZMAC 2005 Conference / Sharon Purchase (ed):pp.34-40
Statement of Responsibility
Cullen Habel, Cam Rungie, and Fang Li.
Conference Name
Australian & New Zealand Marketing Academy Conference (2005 : Fremantle, Western Australia)
Abstract
Brands in a competitive market differ more in the number of customers they have than in the amount of loyalty that is shown by those customers. The “Double Jeopardy Line” is an x-y plot for brands of different market share in the market. This paper uses a benchmark theoretical double jeopardy line to demonstrate when brands are showing greater average purchase frequency than would be expected for their size. By combining a number of existing brands the behaviour of two “superbrands” can be assessed against the Dirichlet benchmark thus representing the systematic deviation for high share brands. The findings are consistent with Fader and Schmittlein’s (1993) finding of “triple jeopardy” – large brands enjoy higher than expected levels of average purchase frequency per shopper. As well as validating a documented limitation of a popular FMCG model it gives insight to marketers as to expected behaviour of its customers given their brand’s size.