Abstract

According to the theory of double jeopardy in the context of marketing, larger brands not only have more buyers, but these buyers tend to be more loyal as well. Based on a survey of 650 customers, the findings validate the presence of a double jeopardy market share to loyalty pattern in the Kuwait fast-food industry. In addition, we offer and examine four possible explanations for the double jeopardy phenomenon. These include the retention effect, the familiarity effect, the design effect, and the satisfaction effect. The data indicate that retention and satisfaction are most closely associated with customer loyalty, offering some managerial implications to practitioners in the field. In summary, if a smaller competitor hopes to grow their brand at a faster rate than their larger counterparts, they should boost acquisition efforts, but also exploit the relationship between customer satisfaction and customer retention to raise their loyalty levels.

Citation

Pleshko, L and Heiens, R (2022), "The Explanatory Mechanisms Underlying the Double Jeopardy Phenomenon in Fast-Food Retailing", Journal of Empirical Generalisations in Marketing Science, Vol. 22, No. 1

Keywords

customer acquisition, customer loyalty, customer retention, double jeopardy