Asymmetric Competition in Choice and the Leveraging of Competitive Disadvantages

Datos Bibliográficos

ID2214035
AutoresTimothy B Heath (0000-0002-8223-7559, Graduate School USA), Gangseog Ryu (National University of Singapore), Subimal Chatterjee (Management Sciences (United States)), Michael S Mccarthy, Michael Mccarthy (0000-0003-3484-8360), David L Mothersbaugh (University of Alabama), Sandra Milberg (Georgetown University), Gary J Gaeth (0000-0001-9514-8531, University of Iowa)
Año2000
Volumen27
Número3
Páginas291-308
Fecha de publicación2000-12-01
Peer ReviewedSí
Open AccessNo
TipoARTICLE
RevistaJournal of Consumer Research (JOURNAL)
Identificadores de la revistaISSN: 0093-5301 • E-ISSN: 1537-5277
EditorialOxford University Press (OUP) (PUBLISHER)
DOI10.1086/317586
OpenAlexW2101995379
IdiomaEN
Citas recibidas2
Referencias citadas31

Studies of grocery sales show that consumers of store brands switch to (price) discounted national brands more than consumers of national brands switch to discounted store brands. Such asymmetric price competition can be explained with numerous mechanisms proposed here and elsewhere. We report a choice experiment that replicates asymmetric price competition favoring higher-quality competitors and demonstrates asymmetric quality competition favoring lower-quality competitors. Also demonstrated are multiple mechanisms contributing to competitive asymmetries, where dominance involving the otherwise preferred brand is particularly potent (e.g., when a higher-quality competitor matches the price of an otherwise preferred lower-quality brand). The findings implicate modifications to (1) theories of decision making when extended to repeat choice, (2) empirical models of secondary purchase data, and (3) strategies for positioning and attacking brands. Whereas improving competitive disadvantages often attracts consumers from competitors more than does improving competitive advantages, this benefit must be weighed against the differentiation sacrificed by improving competitive disadvantages (improving competitive advantages, in contrast, increases differentiation)

Advertising · Business · Competition (biology) · Competitor analysis · Dominance (genetics) · Duopoly · Economics · Industrial organization · Microeconomics · Quality (philosophy) · Consumer Market Behavior and Pricing · Decision-Making and Behavioral Economics · Economic and Environmental Valuation · Marketing