Brand Rivalries and Consumer Behavior

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Brand rivalries have been around for a while: Coke vs. Pepsi, Mac Vs. PC, Sony vs. Xbox, the list goes on. These iconic rivalries have been the centerpieces of the most recognizable marketing campaigns of the last two or three decades. It can be a very mutually beneficial strategy for two established competitors to play off each other. It’s a form of storytelling; it creates a narrative arc that consumers follow, boosting customer engagement.

For example, the Sony vs. Xbox console wars were a major campaign for both companies that spanned nearly 15 years. During the PS3/Xbox rollout in the mid-to-late 2000s, at the height of this campaign, there were moments like the Xbox releasing the 360 an entire year ahead of PlayStation’s new console and taunting them publicly. Then years later, Xbox would have the infamous DRM PR debacle where sharing games became a bit convoluted by public standards. Sony responded by releasing a humorous video demonstrating how sharing their games worked, a video in which two Sony staff members simply passed a disc to one another. The rivalry spawned countless viral moments, and a story arc formed over those years that kept many consumers engaged and loyal across brand lines.

But what if brands tried a different approach? Instead of stoking a rivalry or even friendly competition, what if brands instead praised competition? In a research article titled “Friend and Foe: The impact of complimentary competitor content“(Stockheim, 2024) for ScienceDirect. Stockheim conducts a study on the positive effects on consumer response towards brands endorsing competitors. Their research was based on four controlled study actually found strong evidence that competitors endorsing rivals actually prompts favorable reactions from consumers. It makes them perceive those brands as warmer and more competent. Brands are also moving away from this style of marketing, coming back to our Sony vs. Xbox example: after nearly 20 years of rivalry marketing in the 2020s, these two have ended their rivalry and both publicly ended it and agreed to share exclusive titles and collaborate further in the future.

Rivalry marketing and praising your competitor are different ways of positioning your brand. With rivalry marketing, the positioning comes from contrasting with your rival. “We’re great, because we’re not them.” Another great marketing rivalry that exemplifies this is Mac vs. PC; in the ads in the 2000s, the Mac guy was always “cool” and portrayed as likable and funny. The idea is that you want to be the Mac guy and not the PC guy; it attempts to build loyalty by encouraging consumers to identify with the brand. Praising the competition takes a different approach; instead of focusing on why the other brand is inferior, it acknowledges them and legitimate reasons they are considered a peer while maintaining their own identity. This makes a brand seem competent, honest, and objective. This is important because thin slice theory suggests that people can form impressions from very limited amounts of information, and if a rivalry-related piece of advertising is ill-received, that may negatively color a brand in a multitude of ways to a consumer, better for brands to put their best foot forward.

Now, praising competitors is not guaranteed to work in every situation. Market research on Gen Z suggests they are savvy customers, and they can sniff out inauthenticity; if the praise appears forced, dishonest, or inconsistent with a brand’s established identity; it can come off as a gimmick and actually hurt the brand. Ultimately, brand rivalry is not limited to attacking or outperforming the competition. Traditional rivalry campaigns can create memorable narratives and encourage consumers to identify strongly with one brand, while competitor praise can create a different kind of engagement by signaling confidence, warmth, and competence. Consumers are capable of making surprisingly quick judgments from small interactions, meaning that something as simple as publicly acknowledging a competitor can influence how they perceive a brand. However, the strategy depends on authenticity and context. Whether a brand chooses to challenge its competitors or praise them, the most effective strategy is one that creates a meaningful connection with consumers while remaining consistent with the brand’s identity.

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