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Decision Ambiguity and Incumbent Brand Advantage

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  • Muthukrishnan, A V

Abstract

This article examines the role of decision ambiguity in judgments that consumers make about an incumbent (the brand a consumer currently uses) versus an attack brand (a new, superior competitor). It is hypothesized that decision ambiguity creates an advantage for the incumbent. A conceptualization of decision ambiguity is offered. In three experiments, factors that can cause decision ambiguity are manipulated and their effects on preference for the incumbent are investigated. The results underscore the role of decision ambiguity in incumbent brand advantage. In two other experiments, boundary conditions are examined. Copyright 1995 by the University of Chicago.

Suggested Citation

  • Muthukrishnan, A V, 1995. "Decision Ambiguity and Incumbent Brand Advantage," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 22(1), pages 98-109, June.
    • Handle: RePEc:oup:jconrs:v:22:y:1995:i:1:p:98-109
    DOI: 10.1086/209438
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    Cited by:

    1. Thorbjørnsen, Helge & Dahlén, Micael, 2011. "Customer reactions to acquirer-dominant mergers and acquisitions," International Journal of Research in Marketing, Elsevier, vol. 28(4), pages 332-341.
    2. Grinstein, Amir & Wathieu, Luc, 2012. "Happily (mal)adjusted: Cosmopolitan identity and expatriate adjustment," International Journal of Research in Marketing, Elsevier, vol. 29(4), pages 337-345.
    3. Nel, Jacques & Boshoff, Christo, 2021. "“I just don't like digital-only banks, and you should not use them either†: Traditional-bank customers' opposition to using digital-only banks," Journal of Retailing and Consumer Services, Elsevier, vol. 59(C).
    4. Jonathan D. Bohlmann & Peter N. Golder & Debanjan Mitra, 2002. "Deconstructing the Pioneer's Advantage: Examining Vintage Effects and Consumer Valuations of Quality and Variety," Management Science, INFORMS, vol. 48(9), pages 1175-1195, September.
    5. Pillai, Kishore Gopalakrishna & Kumar, V., 2012. "Differential Effects of Value Consciousness and Coupon Proneness on Consumers’ Persuasion Knowledge of Pricing Tactics," Journal of Retailing, Elsevier, vol. 88(1), pages 20-33.
    6. Woodside, Arch G. & Walser, Martin G., 2007. "Building strong brands in retailing," Journal of Business Research, Elsevier, vol. 60(1), pages 1-10, January.
    7. Erdem, Tulin & Broniarczyk, Susan & Charavarti, Dipankar & Kapferer, Jean-Noel & Keane, Michael & Roberts, John & Steenkamp, Jan-Benedict & Swait, Joffre & Zettelmeyer, Florian, 1999. "Brand Equity, Consumer Learning and Choice," MPRA Paper 53022, University Library of Munich, Germany.
    8. Onesun Steve Yoo & Rakesh Sarin, 2018. "Consumer Choice and Market Outcomes Under Ambiguity in Product Quality," Marketing Science, INFORMS, vol. 37(3), pages 445-468, May.
    9. Ge, Xin & Messinger, Paul R. & Li, Jin, 2009. "Influence of Soldout Products on Consumer Choice," Journal of Retailing, Elsevier, vol. 85(3), pages 274-287.
    10. Babutsidze, Zakaria, 2007. "How Do Consumers Make Choices? A Summary of Evidence from Marketing and Psychology," MERIT Working Papers 2007-005, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    11. Swaminathan, Vanitha, 2003. "Sequential brand extensions and brand choice behavior," Journal of Business Research, Elsevier, vol. 56(6), pages 431-442, June.
    12. Gerald Häubl & Valerie Trifts, 2000. "Consumer Decision Making in Online Shopping Environments: The Effects of Interactive Decision Aids," Marketing Science, INFORMS, vol. 19(1), pages 4-21, May.

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