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

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  • YANG, ZHILIN
  • BI, ZILI
  • ZHOU, NAN

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.

Suggested Citation

  • Yang, Zhilin & Bi, Zili & Zhou, Nan, 2005. "The Double Jeopardy Phenomenon and the Mediating Effect of Brand Penetration between Advertising and Brand Loyalty," Journal of Advertising Research, Cambridge University Press, vol. 45(2), pages 211-221, June.
    • Handle: RePEc:cup:jadres:v:45:y:2005:i:02:p:211-221_05
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    Cited by:

    1. Dawes, John, 2020. "The Natural Monopoly effect in brand purchasing: Do big brands really appeal to lighter category buyers?," Australasian marketing journal, Elsevier, vol. 28(2), pages 90-99.
    2. Sitta, Desislava & Faulkner, Margaret & Stern, Philip, 2018. "What can the brand manager expect from Facebook?," Australasian marketing journal, Elsevier, vol. 26(1), pages 17-22.
    3. Thaichon, Paramaporn & Lobo, Antonio & Prentice, Catherine & Quach, Thu Nguyen, 2014. "The development of service quality dimensions for internet service providers: Retaining customers of different usage patterns," Journal of Retailing and Consumer Services, Elsevier, vol. 21(6), pages 1047-1058.
    4. Uncles, Mark D. & Kwok, Simon, 2013. "Designing research with in-built differentiated replication," Journal of Business Research, Elsevier, vol. 66(9), pages 1398-1405.
    5. Beneke, Justin & Carter, Stephen, 2015. "The development of a consumer value proposition of private label brands and the application thereof in a South African retail context," Journal of Retailing and Consumer Services, Elsevier, vol. 25(C), pages 22-35.

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