Price competition vs. quality competition: Evidence from firm surveys
Journal of Economics and Business, 2021, vol. 116, issue C
This study uses data from firm surveys to present new findings on firms’ strategies for price/quality competition and on the relationship between competition strategy and various firm characteristics, including profitability and productivity. First, the results indicate that a relatively large number of firms adopt a quality competition strategy, particularly firms operating in the service industries. Second, firms adopting a quality competition strategy tend to have highly educated employees, invest in intangible assets, such as R&D and advertising, and show a higher probability of innovating. Third, the profitability and productivity of firms adopting a quality competition strategy is higher than that of firms adopting a price competition strategy, although the difference in productivity according to competition strategy should be interpreted with caution.
Keywords: Competition; Quality; Differentiation; Innovation; Profitability; Productivity (search for similar items in EconPapers)
JEL-codes: D22 D24 L11 L13 M21 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:jebusi:v:116:y:2021:i:c:s0148619521000254
Access Statistics for this article
Journal of Economics and Business is currently edited by Emanuele Bajo and Moritz Ritter
More articles in Journal of Economics and Business from Elsevier
Bibliographic data for series maintained by Catherine Liu ().