Consumer evaluation of net utility: Effects of competition on consumer brand selection processes

This study explores how brand-related information is integrated within a competitive environment. Specifically, we develop a structural equation model of competition between two brands, which includes each brand’s price-quality characteristics (i.e., net utility). The model simultaneously tests how the net utility of the focal and competing brands affects consumers’ attitudes, intentions, and choice regarding the focal brand. This study extends existing research with the findings that price-quality evaluations of a focal brand and net utility perceptions of competing brands influence consumers’ attitudes, intentions, and choice regarding the focal brand. Thus, in order to attract consumers to their brands, marketers should focus not only on improving the performance and net utility of their own brands, but also on studying competing brands in the marketplace.