Asymmetric Competition in Choice and the Leveraging of Competitive Disadvantages

Timothy B. Heath 1 Gangseog Ryu 2 Subimal Chatterjee 3 Michael S. Mccarthy 4 David L. Mothersbaugh 5 Sandra J. Milberg 6 Gary J. Gaeth 7
1 Graduate School of Business
2 NUS - National University of Singapore
3 School of Management
4 Department of Marketing
5 UA - University of Alabama [Tuscaloosa]
6 GU - Georgetown University [Washington]
7 University of Iowa [Iowa City]
Abstract : 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).
Keywords : behavioral decision theory choice economic psychology pricing promotions
Type de document :
Article dans une revue
Journal of Consumer Research, Oxford University Press (OUP), 2000, vol. 27, issue 3, pp. 291-308. 〈10.1086/317586〉
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https://hal-hec.archives-ouvertes.fr/hal-00668916
Contributeur : Antoine Haldemann <>
Soumis le : vendredi 10 février 2012 - 16:26:32
Dernière modification le : lundi 16 juillet 2018 - 18:36:03

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Timothy B. Heath, Gangseog Ryu, Subimal Chatterjee, Michael S. Mccarthy, David L. Mothersbaugh, et al.. Asymmetric Competition in Choice and the Leveraging of Competitive Disadvantages. Journal of Consumer Research, Oxford University Press (OUP), 2000, vol. 27, issue 3, pp. 291-308. 〈10.1086/317586〉. 〈hal-00668916〉

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