Explaining and predicting competitive reaction: A marketing signaling approach

Abstract

A framework of marketing signaling is developed and empirically tested. The framework of marketing signaling is designed to predict competitive reactions. To predict competitive reactions, several marketing signaling constructs are developed, such as the perceived signal commitment, the perceived signal consequences, and the perceived signal aggressiveness. To empirically test the framework, data was collected using a mail survey. The method of the data analysis involved factor analysis, reliability analysis and multivariate regression. The results support the notion of marketing signals. Overall, one can conclude that marketing signals can be helpful in the prediction of competitive reactions.