How brands and consumers can benefit from rivalries

What is it about?

Scholars typically advise brands to stay away from public conflict with competitors as research has focused on negative consequences—e.g., price wars, escalating hostilities, and derogation. This research distinguishes be- tween rivalry between firms (inter-firm brand rivalry) and rivalry between consumers (inter-consumer brand rivalry). Four studies and six samples show both types of rivalry can have positive consequences for both firms and consumers. Inter-firm brand rivalry boosts perceived distinctiveness of competing brands independent of consumption, attitude, familiarity, and involvement. Inter-consumer brand rivalry increases consumer group distinctiveness, an effect mediated by brand identification and rival brand disidentification. We extend social identity theory by demonstrating that: 1) outside actors like firms can promote inter-consumer rivalry through inter-firm rivalry and 2) promoting such conflict can actually provide benefits to consumers as well as firms.

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Why is it important?

The paper challenges the axiom “never knock the competition,” deriving a counter-intuitive way to accomplish one of marketing's premier objectives.