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double jeopardy


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A term for a marketing problem in which smaller brands are bought both less frequently and by fewer people. This usually marks the beginning of a spiral of brand decline. Brands with a large market share have a huge benefit over smaller brands in stable markets. This results from the ‘double jeopardy’ effect that demonstrates how big brands that have more customers (who buy more often) have the double benefit effect and smaller brands have the double jeopardy effect. Buyers buy from portfolios of brands in most market categories. This tends to be in a fixed ratio in which their favourite brand is bought the most often and their third or fourth favourite only 10% or so of the time. In a stable market, the biggest buyers are buying a number of brands and the marketer's goal is to get them to buy their brand repeatedly. Therefore, brands that are lower than fourth preference for the bulk of buyers inevitably fail to gain any real share. The benefits for big brands ensure that new small brands simply have no real chance, unless they truly disrupt the market. See also dirichlet model.

Subjects: Marketing.


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