A well established, and surprisingly general, empirical pattern in markets is that brands with lower market share have buyers that also exhibit less loyalty toward the brand. This pattern has a name – Double Jeopardy – and it undermines the logic of niche marketing strategies focussed on appealing to a small group in a larger market in the hope that doing so will garner greater loyalty.
Another feature of the pattern is that the average small brand buyer tends to be less favourable towards that brand than the average large brand buyer. Indeed, it appears that Double Jeopardy even applies to hotel rating data presented in a recent post in the Data Miners blog by Michael Berry. Here is the key quote:
It is hardly surprising that the Bellagio in Las Vegas has about 250 times more reviews than say, the Cambridge Gateway Inn, an unloved motel in Cambridge, Massachusetts. It may or may not be surprising that these oft-reviewed properties tend to be well-liked by our reviewers. Surprising or not, it’s true: the hotels with the most reviews have a higher average rating than the long tail of hotels, motels, B&Bs, and Inns with only a handful of reviews each.