5. General discussion
5.1. Theoretical implications
Previous studies have predominantly focused on the dark side of public conflict in marketing, uncovering a range of negative consequences, such as price wars, reduced new product adoption, decreases in customer-to-customer helping, intergroup stereotyping, derogation, and schadenfreude (Chen et al., 2009; Ewing et al., 2013; Hickman & Ward, 2007; Thompson et al., 2016; Thompson & Sinha, 2008). Despite indications that rivalry can generate attention for brands and provide consumers with identity and entertainment (Libai et al., 2009; Muñiz & O'Guinn, 2001; Seraj et al., 2015), scholars recommend brands to diffuse rivalries and stay away from public conflict. Our research contrasts this view by showing positive effects of rivalry. Across four studies, we find that rivalry can be an avenue to accomplish one of marketing's main objectives, which is the development of distinctiveness for brands and consumers (Aaker, 2003; Dawar & Bagga, 2015; Escalas & Bettman, 2003; Pickett & Brewer, 2001; Porter, 1980; Snyder & Fromkin, 1977). Contributing to a more balanced view of an emerging phenomenon, we derive and empirically confirm that rivalry creates benefits for both firms and consumers.
By promoting inter-firm rivalry, firms can increase perceived brand distinctiveness, providing an innovative positioning option in large markets. The positive relationship holds when controlling for brand attitude, brand familiarity, consumption, and product category involvement. This indicates that both consumers and non-consumers take note of inter-firm brand rivalry, enabling brands to create a unique positioning even among those (currently) outside of their own customer base.