This paper aims to examine consumers’ reactions to competitive benchmarking. The roles of consumer–brand identification and perceptions of brand dilution are explored.
Five experiments test whether brand identification moderates consumers’ responses to competitive benchmarking. To explore the underlying process, brand image dilution is tested as a mediator of the effect of identification on responses to benchmarking. Meta-analyses across studies provide larger-sample aggregate tests of the key findings.
The findings support the prediction that competitive benchmarking is received more favorably by consumers who do not identify with the benchmarking brand (compared to those who identify with the brand). Perceptions that competitive benchmarking would dilute the brand’s image account for the negative reactions to benchmarking by highly identified consumers, even when these consumers did not hold negative attitudes toward the competitive brand. This research also showed that the potentially negative reactions by highly identified consumers can be overcome by reframing the competitive benchmarking decision as consistent with the brand’s image.
Findings are derived from scenario-based experiments posing a benchmarking or innovation decision related to either fictitious or real brands.
Brands should consider consumer–brand identification when implementing benchmarking strategies. Reframing the decision to align with the brand’s image can help mitigate negative reactions.
This study explores a novel downside of consumer–brand identification. Marketers need guidance on how to manage this generally desirable consumer segment when competitive benchmarking is used.
