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

Published online by Cambridge University Press:  29 December 2005

ZHILIN YANG ,
ZILI BI  and
NAN ZHOU
ZHILIN YANG
Affiliation:
City University of Hong Kong, [email protected]
ZILI BI
Affiliation:
Max Intermedia Ltd., Hong Kong, [email protected]
NAN ZHOU
Affiliation:
City University of Hong Kong, [email protected]
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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.

Type
Research Article
Information
Journal of Advertising Research , Volume 45 , Issue 2 , June 2005 , pp. 211 - 221
Copyright
© Copyright © 1960-2005, The ARF

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