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Realizing the value of extensive replication: A theoretically robust portrayal of double jeopardy

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  • Habel, Cullen
  • Lockshin, Larry

Abstract

Researchers have spent almost 50years developing, refining and applying the NBD-Dirichlet in repeat purchase markets, in particular with extensive replication of the Goodhardt, Ehrenberg, and Chatfield (1984) model. Recent research that employs a double jeopardy (DJ) line appears to have progressed with little regard for this body of theory. This paper reviews the varied applications of the NBD-Dirichlet and extends the theory to the portrayal of a double jeopardy line. This DJ line, an x–y plot of brands' penetration versus purchase frequency in a category, is tested against three alternative ways of drawing the line. A linear model for double jeopardy is adequate when used under limited conditions yet the model breaks down with a broad scope of analysis. This meta-analysis of 37 cross-sectional product categories and a 40-period (quarters) longitudinal dataset evaluates the best approximation of the DJ line to empirical data.

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  • Habel, Cullen & Lockshin, Larry, 2013. "Realizing the value of extensive replication: A theoretically robust portrayal of double jeopardy," Journal of Business Research, Elsevier, vol. 66(9), pages 1448-1456.
    • Handle: RePEc:eee:jbrese:v:66:y:2013:i:9:p:1448-1456
    DOI: 10.1016/j.jbusres.2012.05.012
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