An Exploratory Examination of Retaliatory Preannouncing

Abstract

This article focuses on preannouncing and how consumer preferences are affected by new product preannouncements from competing firms. Elaboration likelihood, the discounting principle, and uncertainty effects are used to suggest how consumer preferences may form as a result of competing preannouncements. Undergraduate students participated in experiments that tested competing premmouncements in multiple product categories. Preferences for the product preannounced first versus the product preannounced second depended on initial reactions to the first preannouncement, information amount, and statements that engender or reduce uncertainty about product performance (p<0.05). Results offer preliminary insights on how preannouncements may be developed to encourage brand preference.