Fashionably late: Strategies for competing against a pioneer advantage

Ali Besharat, Ryan J. Langan and Carlin A. Nguyen

Journal of Business Research, 2016, vol. 69, issue 2, 718-725

Abstract: This study delineates the conditions under which a late entrant is able to outperform a pioneer brand by examining the value relevance of alignable and non-alignable attributes. The first experiment shows that the late entrant can surpass the pioneer by adopting either a distinctive (new, non-alignable attribute) or enhancing (improved, alignable attribute) strategy depending on the value relevance of the new attributes. The second experiment provides evidence that pricing cues become instrumental when the value relevance of the late entrant with a distinctive strategy is low. In this context, the findings show that increasing the price of the product counter-intuitively enhances the preferences for the late entrant.

Keywords: Pioneer advantage; Late entrant; Category-based learning; Associative learning; First-mover; Market entry strategy (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:69:y:2016:i:2:p:718-725

DOI: 10.1016/j.jbusres.2015.08.010

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