Social comparison among competing firms

Kwang Ho Kim, Wenpin Tsai

Research output: Contribution to journalArticle

27 Scopus citations

Abstract

Extending social comparison theory to the context of interfirm competition, we investigate whether and under what conditions firms may benefit by deviating from consumers' views concerning firm comparisons. Based on all of the possible dyadic competitive comparisons among the 26 automakers in the United States, we found that: (1) a focal firm enjoys a greater increase in sales than the target firm when it compares itself with a more reputable target firm, even though consumers do not perceive the focal firm to be comparable to the more reputable firm; and (2) a focal firm enjoys a greater increase in sales than the target firm when it avoids comparison with a less reputable target firm, even though consumers compare the focal firm with the less reputable firm.

Original languageEnglish (US)
Pages (from-to)115-136
Number of pages22
JournalStrategic Management Journal
Volume33
Issue number2
DOIs
StatePublished - Feb 1 2012

All Science Journal Classification (ASJC) codes

  • Business and International Management
  • Strategy and Management

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