Extending the double jeopardy and duplication of purchase laws to the wine market
International Journal of Wine Business Research
ISSN: 1751-1062
Article publication date: 7 June 2019
Issue publication date: 12 June 2019
Abstract
Purpose
This study aims to understand the market structure and explore the applicability of recognised generalisations to a European wine retail market. The study considers whether brands in European wine retailing follow the established double jeopardy and duplication of purchase laws, with the aim of investigating their limits so as to identify where market partitions are evident.
Design/methodology/approach
The researchers conducted a cross-purchasing analysis within the wine category over a 12-month period, using a customer panel of n = 25,000 across a chain of independent retail stores in an English-speaking European country. Analysis was conducted across purchases of the top 20 wine brands.
Findings
Consumer wine repurchase results confirmed a double jeopardy pattern. These consumers’ wine repurchasing behaviour from other top-20 wine brands could have generally been predicted in line with the duplication of purchase law. However, a small number of exceptions to these patterns were identified, suggesting the existence of market partitions.
Research limitations/implications
In this study, market partitions were evident for selected brands, a wine region and a common grape variety, Sauvignon blanc. Such exceptions illustrate that consumer purchase patterns can deviate from predictions, for a small number of brands in a consumer goods category than would be expected given duplication of purchase law norms. Such anomalies to empirical generalisations help demonstrate boundary conditions and lead further research on the market conditions required for such anomalies to be evident. Implications suggest that further research should be conducted on the product features creating market partitions.
Practical implications
The findings suggest that regional wines can appeal to a more clearly partitioned customer group within the clientele, but that substitution is noted among brands within regions.
Originality/value
To the best of the authors’ knowledge, this is the first study to use a large sample consumer database to determine the generalisability of two well-established empirical generalisations: the double jeopardy and duplication of purchase laws, to the wine retail market. Knowing these are applicable to the wine retail markets allows wine producers and retailers to predict expected repurchase and cross-purchasing norms.
Keywords
Acknowledgements
The authors wish to acknowledge the support extended by the retail group that provided the data used for this study. Without this information, the attached article would not have been possible.
Citation
Wilson, D. and Winchester, M. (2019), "Extending the double jeopardy and duplication of purchase laws to the wine market", International Journal of Wine Business Research, Vol. 31 No. 2, pp. 163-179. https://doi.org/10.1108/IJWBR-12-2017-0072
Publisher
:Emerald Publishing Limited
Copyright © 2019, Emerald Publishing Limited