 Price competition vs. quality competition: Evidence from firm surveysJournal of Economics and Business, 2021, vol. 116, issue C, No S0148619521000254 Abstract: 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) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:jebusi:v:116:y:2021:i:c:s0148619521000254 DOI: 10.1016/j.jeconbus.2021.106007 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 |
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