Understanding the role of anticipated loss and gain during consumer competition: the moderation of purchase importance and prior brand attitude

Abstract

Purpose This study examined how consumer competition affects purchase intention. The anticipated loss of not buying and the anticipated gain of buying are considered the underlying mechanism. This research also demonstrated the moderating effects of situational factors such as purchase importance and prior brand attitude. Design/methodology/approach In total, 200 responses were collected from an experiment that manipulated the level of consumer competition in the retail environment. Structural equation modeling (SEM) and multigroup analysis were used to test the hypotheses. Findings The results indicated that perceived competition positively affects both the anticipated loss of not buying and the anticipated gain of buying. Among these, only the anticipated gain of buying significantly increased purchase intention. However, for participants with lower purchase importance or prior brand attitude, both the anticipated loss of not buying and the anticipated gain of buying significantly affected purchase intention. Research limitations/implications The findings suggest an appropriate communication method when practicing retail strategies related to competition. In particular, the consideration of intervention of purchase importance and prior brand attitude helps retail managers execute marketing strategies more effectively. Originality/value This study verified the effect of consumer competition on purchase intention in terms of anticipated losses and gains related to buying. Moreover, the moderation effects of situational factors such as purchase importance and prior brand attitude were initially examined in the context of consumer competition.