The Double Jeopardy Phenomenon and the Mediating Effect of Brand Penetration between Advertising and Brand Loyalty

Zhilin Yang, Zili Bi and Nan Zhou

Journal of Advertising Research, 2005, vol. 45, issue 02, pages 211-221

Abstract: In a study of the Double Jeopardy (DJ) phenomenon and the mediating effect of brand penetration between advertising and brand loyalty, we integrate a survey of 19,335 consumers on their buying behavior of 187 brands across two fast moving consumer goods categories, shampoo and detergent, and a database of advertising expenditures on these brands in four major cities in China. We find that (1) smaller brands are punished twice for being small, following the well-known DJ pattern, which says that brands with larger market penetration tend to enjoy higher repeated purchases and smaller brands attract fewer buyers who also buy less; (2) brand penetration plays a mediating role in the relationship between advertising and brand loyalty; and (3) there is an asymmetric effect of market penetration on brand loyalty for small and big brands.

Date: 2005

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Persistent link: http://EconPapers.repec.org/RePEc:cup:jadres:v:45:y:2005:i:02:p:211-221_05

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