Decision Ambiguity and Incumbent Brand Advantage

Abstract

This article examines the role of decision ambiguity in judgments that consumers make about an incumbent (the brand a consumer currently uses) versus an attack brand (a new, superior competitor). It is hypothesized that decision ambiguity creates an advantage for the incumbent. A conceptualization of decision ambiguity is offered. In three experiments, factors that can cause decision ambiguity are manipulated and their effects on preference for the incumbent are investigated. The results underscore the role of decision ambiguity in incumbent brand advantage. In two other experiments, boundary conditions are examined.