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The Upside to Large Competitors

August 19, 2014 | Neeru Paharia, Anat Keinan, Jill Avery | Marketing

New research suggests that a smaller company can benefit by making consumers aware that it competes against bigger corporations. In six lab and field studies, the authors explored the effects of having a large, dominant competitor and found advantages in highlighting a competitor's size and proximity. “Small brands see consumer support go up when they are faced with a competitive threat from large brands,” write the authors. “This support translates into higher purchase intention, more purchases and more favorable online reviews.”

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