Competitive Reputations, Multimarket Competition and Entry Deterrence

Publication Type

Journal Article

Publication Date

1998

Abstract

This research examines how a market incumbent's competitive reputation with a potential entrant can deter market entry in the context of multirnarket competition. The authors use a judgement experiment to examine this relationship. In a setting where a potential entrant is already engaged with an incumbent in another market, the study manipulates the incumbent's reputation for aggressiveness and intelligence and measures the reputational effect on the entrant's perceptions of the new market. The study shows that an incumbent's reputation for aggressiveness but not intelligence makes a market less attractive and more risky to a potential entrant. Further, reputation has a stronger effect when the degree of multimarket contact is high.

Discipline

Business

Research Areas

Marketing

Publication

Journal of Strategic Marketing

Volume

6

Issue

2

First Page

81

Last Page

96

ISSN

0965-254X

Identifier

10.1080/09652549800000002

Link to Full Text

Share

COinS