The existence of double jeopardy within the order of entry effect

Abstract

Order of entry research has stressed the importance of a superior marketing mix effort relative to the pioneer if a late entrant is to overcome the order of entry effect. Several researchers have argued, but have not demonstrated, that a superior marketing mix effort may even help a late entrant avoid the order of entry effect. If this is proven to be the case, a double jeopardy trend may exist in that late entrants that have a superior (inferior) marketing mix effort not only gain (lose) market share through the effects of this superiority, they also avoid (incur) the market share penalty associated with their entry position. Consumer scanner data from 24 categories were used to demonstrate the existence of a double jeopardy trend within the order of entry effect in that a late entrant’s market share benefits twice from a superior marketing mix effort and is punished twice for an inferior effort.