Competitive Response to New Product Introductions: The Mediating Role of Perceived Threat and Intent

Many studies have tried to link competitive responses to the observable characteristics of a competitive event. What has mainly been studied is a direct link between the nature of the competitive action (type of event, type of competitor, market conditions, etc.) and the nature of the response (magnitude, marketing mix characteristic, timing, etc.). While some effects have been found, the overall explanatory power of the models remains modest. More recent research has argued that managerial interpretation of competitive signals and actions or perceived threat by managers need to be taken into account. We propose that the influence of competitive action on retaliatory reactions is mediated by two main constructs: perceived threat and perceived competitive intent. The magnitude and velocity of competitive reactions will be bigger if perceived threat is high and if competitive intent is perceived as being a direct competitive attack. The concepts of perceived threat and competitive intent are defined and measurement scales are developed and validated. The mediating effect of the two constructs is tested on a sample of product managers and marketing managers from both consumer and industrial goods manufacturers.