The theory of double jeopardy: An example from a forest products industry

The phenomenon of double jeopardy is commonly manifested in the structure of competitive markets where items differ in their popularity. It is defined as a phenomenon in which more-popular brands not only enjoy more buyers, but also have buyers who are more loyal. Conversely, less-popular brands are chosen by a smaller number of buyers. The jeopardy is doubled because the smaller, less-popular brands are purchased less often and in smaller quantities by their fewer buyers. This paper provides results from a study that tested for attitudinal and behavioral patterns of double jeopardy for furniture-related trade shows. Data indicate that smaller, less-popular trade shows suffer from regular patterns of double jeopardy much the same as those encountered in consumer goods. Managers in any forest-based industry can use this information to recognize the existence of double jeopardy patterns and to understand ramifications for their position within a given market.