Does brand loyalty influence double jeopardy? A theoretical and empirical study

Abstract

Purpose

Compared with the large brands, not only do the small brands attract fewer customers but also their customers buy them less frequently. This twin disadvantage of the less popular brands is termed “double jeopardy” (DJ). Earlier studies on the DJ effect have generally explained this as a behavioral phenomenon relating to the size structure of the market. This article aims to argue that the DJ effect is also influenced by the relationship between consumer choice antecedents and consumer buying behavior.

Design/methodology/approach

Using consumer attitudinal and behavioral data on various toothpaste brands collected by a leading consumer goods company, it is shown that small brands are jeopardized in terms of individual‐level choice antecedents of both loyal and switching consumers. In particular, small brands are further jeopardized for brand=switching consumers in terms of weaker attitude‐choice relationship.

Findings

The research findings have significant managerial implications. the research suggests that double jeopardy of small brands may not be as irreversible phenomenon posited. A more in‐depth understanding of the individual‐level antecedents of consumer choice should help small brands to develop innovative offensive and defensive strategies aimed at favorable individual choice antecedents of loyal and switching consumers. For example, it may be prudent for a small brand to concentrate on a selected few segments (such as brand‐loyal segments) instead of spreading scarce brand resources across scattered promotion and distribution strategies.

Originality/value

Examines the choice antecedents of consumers who either are loyal to a brand or are brand switchers.

Citation

Bandyopadhyay, S., Gupta, K. and Dube, L. (2005), "Does brand loyalty influence double jeopardy? A theoretical and empirical study", Journal of Product & Brand Management, Vol. 14 No. 7, pp. 414-423. https://doi.org/10.1108/10610420510633369