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Article
Publication date: 27 March 2009

John Dawes, Jenni Romaniuk and Annabel Mansfield

The purpose of this paper is to examine competition between tourism destination brands in terms of how they share travelers with each other.

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Abstract

Purpose

The purpose of this paper is to examine competition between tourism destination brands in terms of how they share travelers with each other.

Design/methodology/approach

The study analyzes survey data from four international markets (USA, UK, Japan and Singapore). The study examines the cross‐purchasing of travel destinations. It applies an established empirical generalization, the duplication of purchase law (DPL) to frame hypotheses and contextualize results.

Findings

The overall results are consistent with the DPL. Destination brands share tourists with other destinations generally in‐line with the popularity of the competing destination. However, there are very noticeable market partitions, most of which take two forms: destinations that are either geographically close to each other, or close to the point of origin. Destination brands in these partitions share travelers far more than they would be expected to, given their respective size.

Practical implications

Tourism marketers need to appreciate the broad nature of competition. A specific destination brand competes with many other travel destinations, sharing customers more with other broadly popular destinations and less with less popular destinations.

Originality/value

The analytical approach presented in this study provides a straightforward benchmark for assessing the expected level of competition between particular tourist destinations, given their respective overall popularity.

Details

International Journal of Culture, Tourism and Hospitality Research, vol. 3 no. 1
Type: Research Article
ISSN: 1750-6182

Keywords

Article
Publication date: 1 December 1998

Malcolm Wright, Anne Sharp and Byron Sharp

Over the last 30 years a range of empirical generalisations has been developed about the performance of competitive brands in frequently purchased product categories…

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Abstract

Over the last 30 years a range of empirical generalisations has been developed about the performance of competitive brands in frequently purchased product categories. These generalisations have been based mainly on European and US data, and this paper addresses the question of whether they also hold in Australia and New Zealand. We examined consumer panel data from four different markets (supermarkets, department stores and retail fuel in Australia and retail fuel in New Zealand) and found similar patterns to those in Europe and the USA, although there were some minor exceptions, and also some interesting variations between markets. Our results suggest that there is much that Australasian marketers can learn from using models such as the Dirichlet, which was developed in the Northern hemisphere, to identify norms and exceptions in their own markets.

Details

Journal of Product & Brand Management, vol. 7 no. 6
Type: Research Article
ISSN: 1061-0421

Keywords

Article
Publication date: 7 June 2019

Damien Wilson and Maxwell Winchester

This study aims to understand the market structure and explore the applicability of recognised generalisations to a European wine retail market. The study considers…

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.

Article
Publication date: 1 January 2005

Jenni Romaniuk and John Dawes

Investigates the purchasing of brands across different price tiers. The purpose was to determine if buying across price tiers followed the same pattern widely found in…

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Abstract

Purpose

Investigates the purchasing of brands across different price tiers. The purpose was to determine if buying across price tiers followed the same pattern widely found in brand purchasing, known as the Duplication of Purchase Law.

Design/methodology/approach

Uses a consumer survey methodology, using bottled wine as an example category. It provides evidence that while buyers exhibit repeat‐purchase loyalty to price tiers, they also buy from a repertoire of different price tiers.

Findings

Finds that sharing of purchases with other price tiers does approximate the Duplication of Purchase Law. That is, a price tier shares customers with other price tiers approximately in line with the overall popularity of those other price tiers. This suggests that competition between price tiers is largely predictable, and based on the prevalence of purchases at each tier. However, there is also consistent “partitioning” where adjacent price tiers share customers to a greater extent than would be expected under the Duplication of Purchase Law.

Originality/value

This research is valuable to both marketers and researchers, as it provides a quantifiable context and structure to those examining competition from a pricing perspective. It provides insights into where new brands should be launched and potential cannibalization effects. Finally, the presence of a price repertoire suggests that researchers should be wary of categorizing buyers to specific segments based on single answers to questions about “last” or “typical” price paid for purchases. Several fruitful areas for further research also emerge from this study, in particular the examination of what price levels or tiers actually constitute break‐points in markets, whereby brands residing in one tier are recognized as markedly different to those in other tiers.

Details

Journal of Product & Brand Management, vol. 14 no. 1
Type: Research Article
ISSN: 1061-0421

Keywords

Article
Publication date: 29 March 2013

Gavin Lees and Malcolm Wright

There has been long‐standing interest in the duplication of audience between media vehicles, starting with work by Agostini and later developed by Goodhardt, Ehrenberg and…

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Abstract

Purpose

There has been long‐standing interest in the duplication of audience between media vehicles, starting with work by Agostini and later developed by Goodhardt, Ehrenberg and Collins into the “duplication of viewing law”. The aim of this paper is to further extend duplication analysis to radio listening. As radio markets are believed to have many partitions, the paper considers whether an un‐partitioned duplication analysis provides an adequate description of market structure.

Design/methodology/approach

The paper reports the results of a weekly radio diary with 1,129 responses in a regional New Zealand radio market. This data has special characteristics suitable for this research: the market has experienced rapid expansion in station numbers with substantial attempts at format segmentation, providing a strong test of the un‐partitioned nature of the duplication analysis; use of a single regional market avoids the aggregation bias inherent in national data; use of primary research allows the inclusion of non‐commercial stations, which are not included in syndicated radio research in this market.

Findings

Duplication of listening does broadly follow the duplication of viewing law. Contrary to industry belief, most of the deviations from a mass market are not due to micro‐formats (e.g. classic rock) but rather are explained by a broad partitioning of the market between “talk” and “music” segments, although the paper also identifies a unique station that still deviates from its parent partition.

Research limitations/implications

The duplication of listening law does hold for this market, showing that radio stations compete largely on the basis of cumulative audience. However, it also provides a tool for identifying partitions and benchmarking station performance within this broad market structure. Future research could consider demographic or psychographic correlates of market partitions, alternative methods of purchase‐based segmentation such as nested logit, latent segmentation and Hendry analysis, and breaking duplication analysis down from weekly level to dayparts.

Practical implications

Station and network managers can apply this methodology to identify partitions and benchmark brand performance in their own markets. They should expect to usually compete on the basis of cumulative audience rather than station loyalty, as customer loyalty tends to be a feature of the partition rather than the station. Media planners should also be aware of the duplication of listening law when designing media schedules: greater frequency can be achieved by choosing a set of stations with high duplications (generally higher share stations); greater reach can be achieved by including some smaller stations with low duplications.

Originality/value

This is the first application of duplication analysis to radio audiences, and the confirmation of the law goes against practitioner expectations. It is also a rare example of how duplication analysis can be used to identify not just segments, but also individually unique stations. Therefore, while this research disconfirms prior expectations it also provides a new tool for practical segmentation of radio markets.

Details

European Journal of Marketing, vol. 47 no. 3/4
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 1 December 1996

Wendy Lomax

Notes that the risk of cannibalization is a very real threat for many new product launches and that the risk becomes even more significant if the new product is launched…

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Abstract

Notes that the risk of cannibalization is a very real threat for many new product launches and that the risk becomes even more significant if the new product is launched under the same brand name as an existing product. Points out that, since line extension is by far the most common branding strategy for new products, it is important that managers develop their understanding of the effect and that little empirical work has been published on the subject. Defines cannibalization and examines three techniques which managers might use to measure it. Tests gains loss analysis, duplication of purchase tables and deviations from expected share movements on consumer panel data relating to three line extensions in the UK and German detergent markets. Presents results showing cannibalization of the parent brand by all three extensions and suggesting the need for managers to use multiple methods when evaluating the degree of cannibalization. Emphasizes the need to sample over time, since the extent of cannibalization is shown to be dynamic.

Details

Marketing Intelligence & Planning, vol. 14 no. 7
Type: Research Article
ISSN: 0263-4503

Keywords

Article
Publication date: 8 August 2018

Zachary Anesbury, Yolanda Nguyen and Svetlana Bogomolova

Increasing and maintaining the population’s consumption of healthful food may hinder the global obesity pandemic. The purpose of this paper is to empirically test whether…

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Abstract

Purpose

Increasing and maintaining the population’s consumption of healthful food may hinder the global obesity pandemic. The purpose of this paper is to empirically test whether it is possible for healthful sub-brands to achieve higher consumer behavioural loyalty than their less healthful counterparts.

Design/methodology/approach

The study analysed three years of consumer panel data detailing all purchases from five consumer goods categories for 15,000 UK households. The analysis uses best-practice techniques for measuring behavioural loyalty: double jeopardy, polarisation index, duplication of purchase and user profile comparisons. Each sub-brand’s healthfulness was objectively coded.

Findings

Despite the level of healthfulness, all sub-brands have predictable repeat purchase patterns, share customers as expected and have similar user profiles as each other. The size of the customer base, not nutrition content, is, by far, the biggest determinant of loyalty levels.

Research limitations/implications

Consumers do not show higher levels of loyalty to healthful sub-brands, or groups of healthful sub-brands. Nor do they buy less healthful sub-brands less often (as a “treat”). There are also no sub-groups of (health conscious) consumers who would only purchase healthful options.

Practical implications

Sub-brands do not have extraordinarily loyal or disloyal customers because of their healthfulness. Marketers need to focus on growing sub-brands by increasing their customer base, which will then naturally grow consumer loyalty towards them.

Originality/value

This research brings novel evidence-based knowledge to an emerging cross-disciplinary area of health marketing. This is the first study comparing behavioural loyalty and user profiles towards objectively defined healthful/less healthful sub-brands.

Details

European Journal of Marketing, vol. 52 no. 9/10
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 1 February 2003

Janet Hoek, Zane Kearns and Kathryn Wilkinson

Although managers can use panel data to monitor their brands’ performance in fast‐moving‐consumer‐goods categories, the regularities researchers have documented apply to…

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Abstract

Although managers can use panel data to monitor their brands’ performance in fast‐moving‐consumer‐goods categories, the regularities researchers have documented apply to stationary and unpartitioned marketplaces. However, the introduction of a new brand may alter the structure of a marketplace and thus the behaviour patterns consumers display. This paper discusses the regularities typically observed in stable markets and considers these in the context of a market that had just experienced a new brand launch. It is concluded that the new brand behaved as an established brand very quickly and that the generalisations used to benchmark existing brands provided accurate predictions of the new brand’s performance.

Details

Journal of Product & Brand Management, vol. 12 no. 1
Type: Research Article
ISSN: 1061-0421

Keywords

Article
Publication date: 11 November 2014

Margaret Faulkner, Oanh Truong and Jenni Romaniuk

The purpose of this research is to analyze brand competition in China using the Duplication of Purchase (DoP) law, with important implications for understanding Chinese…

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Abstract

Purpose

The purpose of this research is to analyze brand competition in China using the Duplication of Purchase (DoP) law, with important implications for understanding Chinese buyer behavior in comparison with Western buyers. Discovered in the Western markets, the DoP law holds across a variety of product categories.

Design/methodology/approach

Multiple sets of new data are examined to extend past research in the application of the DoP law in Chinese buying behavior. This study draws on panel data and self-reported data, utilizing bootstrapping to identify partitions where excess sharing occurs.

Findings

This paper finds the DoP law holds across six categories (two personal care, two impulse categories and two durables), as well as over multiple years. Brands in China share customers with other brands in line with the market share of the competitor brand. There were few partitions where brands shared significantly more customers than expected. Partitions occur due to the same umbrella brand or ownership, and geographic location.

Research limitations/implications

Areas for further research include extended replication in other categories, investigating partitions and whether a different consumer path to purchase occurs in China.

Practical implications

DoP can be applied across a wide range of categories in China to understand market structure. New entrants to China can use this approach to understand a category from a consumer behavior perceptive. DoP provides guidelines for marketers to identify competition and allocate resources appropriately.

Originality/value

This research provides a comprehensive, unparalleled examination across six very different categories of brand competition in China. This gives confidence in the robustness and generalizability of the results.

Details

Journal of Product & Brand Management, vol. 23 no. 7
Type: Research Article
ISSN: 1061-0421

Keywords

Article
Publication date: 16 April 2018

Andres Musalem, Luis Aburto and Maximo Bosch

This paper aims to present an approach to detect interrelations among product categories, which are then used to produce a partition of a retailer’s business into subsets…

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Abstract

Purpose

This paper aims to present an approach to detect interrelations among product categories, which are then used to produce a partition of a retailer’s business into subsets of categories. The methodology also yields a segmentation of shopping trips based on the composition of each shopping basket.

Design/methodology/approach

This work uses scanner data to uncover product category interdependencies. As the number of possible relationships among them can be very large, the authors introduce an approach that generates an intuitive graphical representation of these interrelationships by using data analysis techniques available in standard statistical packages, such as multidimensional scaling and clustering.

Findings

The methodology was validated using data from a supermarket store. The analysis for that particular store revealed four groups of products categories that are often jointly purchased. The study of each of these groups allowed us to conceive the retail store under study as a small set of sub-businesses. These conclusions reinforce the strategic need for proactive coordination of marketing activities across interrelated product categories.

Research limitations/implications

The approach is sufficiently general to be applied beyond the supermarket industry. However, the empirical findings are specific to the store under analysis. In addition, the proposed methodology identifies cross-category interrelations, but not their underlying sources (e.g. marketing or non-marketing interrelations).

Practical implications

The results suggest that retailers could potentially benefit if they transition from the traditional category management approach where retailers manage product categories in isolation into a customer management approach where retailers identify, acknowledge and leverage interrelations among product categories.

Originality/value

The authors present a fast and wide-range approach to study the shopping behavior of customers, detect cross-category interrelations and segment the retailer’s business and customers based on information about their shopping baskets. Compared to existing approaches, its simplicity should facilitate its implementation by practitioners.

Details

European Journal of Marketing, vol. 52 no. 7/8
Type: Research Article
ISSN: 0309-0566

Keywords

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