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TopBackground
DJ is one of the most widely recognized empirical generalizations in the field of marketing (e.g., Lees, 2006). Building on the original work by McPhee (1963) based on media consumption, researchers have reported empirical evidence illustrating how brands with high market share tend to have more customers (higher market penetration), as well as slightly higher levels of brand loyalty (e.g. higher level of repeat purchases or higher purchase frequency) compared to ‘smaller brands’, i.e. brands with low market share. A way of interpreting this simple empirical rule from a managerial perspective is that there is a strong direct relationship between the ‘size’ of a brand (expressed in terms of market share) and its level of loyalty and overall market performance (Ehrenberg, 2000). This affects also other aspects of buying behavior, such as typical components of brand equity. Barwise and Ehrenberg (1985), demonstrated that the DJ pattern affects also a key brand equity component: the set of brand perceptions held in memory by consumers. Bigger brands, in fact, having more users (higher penetration) also tend to be associated with a larger pool of concepts by consumers, hence to be more salient marketwise (Barwise and Ehrenberg, 1985).
Key Terms in this Chapter
Double Jeopardy Pattern: A simple ‘rule’, which asserts that brand loyalty is a direct function of market share. It is assumed that marketing inputs such as promotion, advertising, and price only have an indirect influence through sales and market share.
Market Share: A percentage of market, in units or revenue.
Offline Penetration: A brand’s proportion of offline consumers that have at least once used the product. In the consumer magazine context this can be calculated as ‘Number of print-magazine’s readers’ / ‘Nr. of consumers, who read magazines’.
Brand Loyalty: A level of repeat purchases or a level purchase frequency. Brand loyalty has also other definitions, but this definition is used in Double Jeopardy pattern.
Offline Market Share: A percentage of offline market, in units or revenue. In the consumer magazine context this can be calculated as ‘Circulation of the magazine’ / ‘Sum of circulations of all magazines’.
Online Market Share: A percentage of online market, in units or revenue. In the consumer magazine context this can be calculated as ‘Number of sessions in the website’ / ‘Sum of nr. of sessions of all magazine websites’.
Online Penetration: A brand’s proportion of online consumers that have at least once used the product. In the consumer magazine context this can be calculated as ‘Number of website visitors’/ ‘Number of people using the Internet’.
Penetration: A brand’s proportion of consumers that have at least once used the product.