Brand Rivalries & Consumer Behavior

Brand rivalries have have been around since the beginning of business where each business strategizes to strengthen its brand and market presence, but they can gain credibility thru praising its competitors. This can enhance and even cultivate stronger relationships with consumers thus leading to a more positive attitude towards the brand (Keisha, et.al. 2022).

There are many examples of brand rivalries, for example;

  • Mac vs PC
  • Playstation vs Xbox
  • Nike vs Adidas
  • Kellogg’s vs Post
  • Apple vs Samsung

(Swamineth, 2025)

Research of Traditional Rivalry vs Praising Marketing Strategies

Business competition is generally what most companies think of when they advertise and generally want to show their strengths with direct comparisons to their competitors weaknesses. Brand loyalists buy specific brands that align with their values and feel that it signals something about the purchase to other consumers and can lead to advocacy or being a brand advocate or ambassador. This loyalty can bring a sense of community between consumers as they share their experiences to strengthen their brand perception However, research has shown that a new strategy praising a competitor can actually lead to better community building and increased sales, per Harvard Business Review.

It can be advantageous praising competitors to drive a feeling of “warmth” or trustworthiness and this can lead consumers into showing a greater confidence with a sense a of connection to brands that praise their rivals. Rivals that can not only show the contrast between their brands’ strategies that emphasize their distinctions to include comparison and differences, can also show respect for their rivals.

Influence of Consumer Response to Praising a Competitor

During the consumer decision buying process many consumers get decision fatigue while processing all of the information during the evaluation of alternatives phase, because most products have many alternatives and researching and comparing takes time. Time is important to consumers and most prefer honesty most favorably in a brand if they can see that despite a product being different it can praise another while still showing confidence in their own product. Consumers acknowledge this as a strength of “trustworthy” and transparency, thus highlighting its own unique selling points.

When a brand can compare and contrast their product to competitors with their uniqueness to include featured benefits and innovations; it can assist a consumer in their evaluation efficiency process, such as in the thin-slice theory, where consumers must make quick decisions based on a small amount or limited information (Ambady & Rosenthal, 1992) . This brand self evaluation can increase consumer engagement with increased purchase intent through increasing perceived value of product, thus decreasing the consumer cognitive load. This can be vital during automatic processing events when consumers are making automatic or even subconscious decisions using emotions, personability, or even social dynamics intuition. This automatic processing allows consumers efficiency using nonverbal focus and emphasizes can lead social evaluation of intuition versus reflection as more favorable to consumers (Du, 2021) .

When Praising Competitors Might Not Work

  • Most of all insincere or inauthentic praise can damage a brand’s reputation if it appears it is only for strategic reasons or in extremely competitive or divided market with few competitors.
  • Aa clear differentiation must be made showing a brand’s unique selling points versus competitors, or the consumer may choose the competitors product
  • Excessive praise can dilute a brands’ image as insincere with a lack or merit and seen as inauthentic or strategic.
  • When a brand image is heavily dependent on exclusivity such as with luxury items that are branded as having superior performance or innovation, or where consumers expect a strong stance such as when it is embedded in a company’s culture ( Swaminathan, 2025).

References

Ambady, N., & Rosenthal, R. (1992). APA PsycNet. Psycnet.apa.org. https://psycnet.apa.org/doiLanding?doi=10.1037%2F0033-2909.111.2.256

Cutright, K. M., Du, K. M., & Zhou, L. (2022, March 24). Research: When Praising the Competition Benefits Your Brand. Harvard Business Review. https://hbr.org/2022/03/research-when-praising-the-competition-benefits-your-brand

Du, K. (2021, November 17). How Brand-to-Brand Praise Influences Consumer Perceptions and Choices. American Marketing Association. https://www.ama.org/2021/11/17/befriending-the-enemy-the-effects-of-observing-brand-to-brand-praise-on-consumer-evaluations-and-choices/

Swaminathan, H. (2025, November 29). Brand Rivalry vs. Competitor Praise: Shaping Consumer Perception. Futurist Findings. https://futuristfindings.com/2025/11/28/brand-rivalry-vs-competitor-praise/

Consumer Behavior

SNHU Marketing 345: Consumer Behavior

Module One Blog,….

Picking a Company and Category for Final Project

     This symbol is iconic for the Nike brand.  Nike (NKE), founded January 25, 1964 initially as “Blue Ribbon Sports” and changed its name on May 30, 1971 after the Greek goddess of victory.  Nike is a multinational global brand and top 100 of the Fortune 500 Companies and sells products in over 190 countries.  Nike has the highest market value among sports businesses.  Nike has markets products under its own brand along with several others such as Air Max, Nike, Pro, Nike golf, etc.  Regarding consumer behavior, Nike is well known for its trademarks of “Just Do It” slogan and its iconic Swoosh logo as noted above (Wikipedia, 2019).
Nike is a major innovator, developer, and marketer of some of today’s most iconic and fashionable footwear. Research and development investment in the hundreds of millions of dollars annually, is crucial regarding their product designs for their $4.7 billion demand creation budget, as they continue to focus on new technology innovations such as: Flyknit, Air, composite foam, and carbon fiber products. This expenditure is required for their model of direct-to-consumer experiences as promoted by their heavy marketing using major athlete endorsements, digital campaigns, and emotional storytelling, thus centering on the athlete’s voice and purpose (Statists, 2024)
Keeping this information in focus, I will be picking footwear as a category within Nike to address consumer behavior to conduct an analysis of the consumer segment to reach that group through analysis of the buying behavior of that group. Utilizing this analysis will allow me to present a proposed marketing strategy to an executive team. This final project presentation will provide marketing strategies to reach the chosen footwear segment at different points during the buying cycle. Per Statists “This segment is critical in pursuing because it is the primary driver of revenue for Nike and accounts for approximately 66% of sales; furthermore, it will allow Nike to continue or improve their 44.4% market share in the athletic footwear market
References
Statista. (2024, February 15). Nike: Revenue share by product type worldwide 2020. Statista. https://www.statista.com/statistics/412760/nike-global-revenue-share-by-product/Wikipedia . (2019, October 22). Nike, Inc.

Wikipedia; Wikimedia Foundation. https://en.wikipedia.org/wiki/NIKE

Ethical and Legal Considerations

Deceptive mobile marketing practices are both illegal and unethical.  Every year there are numerous consumers injured by these poor marketing behaviors and some companies are sued by individuals or by class action lawsuit.  Also, the federal government, specifically the Federal Trade Commission (FTC) commonly sues companies over deceptive marketing practices, but also the Consumer Financial Protection Bureau (CFPB) can investigate, or even Department of Justice (DOJ) can also choose to prosecute in coordination with the FTC, particularly in broad consumer fraud matters.

Some recent illegal mobile marketing practices that have been settled by the FTC are:

Cerebral (an online mental health care service provider)– Over deceptive cancellation practices that have led to $ 5 million in refunds sent back to consumers.  FTC allegations are they required clients to navigate a complex process in cancelling their subscriptions and slow -walking their requests and billing them in the process, along with disclosing sensitive personal health information and other sensitive data to third parties for advertising.  According to the FTC, “Cerebral violated the Restore Online Shopper’s Confidence Act by failing to clearly disclose all material terms of their cancellation policies before charging customers”.  In implementing a multi-step and multi-day process to cancel membership this had negative consequences on consumer as they are being billed for unwanted services.  If personal health information is also transmitted to third party for advertising this can have negative consequences to customers since their private information is then made public and could potentially lead to unwanted deceptive acts such as scams, phishing, etc. (Delapuente, 2025)

Another recent FTC settlement regarding deceptive marketing methods was brough against Amazon in September 2025.  The FTC allegations against Amazon is” they used deceptive methods to sign up customers for Prime subscriptions and made it exceedingly difficult to cancel” per FTC.  FTC secured a $2.5 billion settlement stating that Amazon enrolled consumers into Prime subscriptions without their consent with also making it hard to cancel.  FTC charged Amazon for violating the FTC Act and the Restore Online Shoppers’ confidence Act (ROSCA) with a $ 1 billion civil penalty and $1.5 billion in refunds back to harmed consumers (FTC Secures Historic $2.5 Billion Setttlement Against Amazon, 2025). This causes negative consequences on the consumer as they are billed for unwanted services and could potentially cause monetary harm if they don’t have the money available to pay the charges

Google was recently sued by class action lawsuit due to its “Location History” feature that allegedly continued to collect location data despite consumers turning of their location history in their device.  An agreement was approved for $62 million and under the terms of the agreement most of the money would go to third party interest groups as cy pres awards, but this is being opposed by the 250 million mobile device users (class members) and their appeal is still pending.  The law that was broken with this deceptive act is the FTC Act, Section 5. Google was also sued by California for the same violation for its California Invasion of Privacy Act (CIPA) for $93 million and also in Europe for violating the GDPR by tracking sensitive location data.  Google stated the data was used for targeted advertising ads by profiling.  The total settlement for this location tracking was $392 million, levied by governments and states against Google (Allyn, 2022)

When companies violate legal considerations, their possible penalties can be fines, restitution, injunctions, criminal charges, reputational damage, regulatory sanctions, and additional penalties based on the severity and nature of each violation and can be multiplied for each infraction.  Financially companies can be charged with fines and / civil penalties and additional charges brought if they defy a “Notice of Penalty Offense” on deceptive advertising, privacy violations, or false marketing claims (FTC, 2021).  Restitution and compensation can be levied under legal considerations by requiring the company to refund unauthorized charges, thus compensating affected parties for their losses.  If a company receives court orders to cease certain violations of deceptive advertising, then they could have an injunction to trigger greater penalties or legal action to include criminal liability.  If it is known by  company executives or employees of intentional legal violations then criminal charges of imprisonment in addition to corporate fines.  Lastly, noncompliance with legal considerations could ultimately lead to regulatory or license restrictions such as suspension of license, permit revocation, or restrictions on business activities (Kroeck, n.d.).

Despite many legal ramifications that can interfere with a company’s business, the ultimate damage done when they violate legal considerations, is loss of sales, reputation, brand loyalty, investor confidence, and loss of contracts or partnerships (Rey, 2023).

Steps and actions that an ethical marketer must take with all mobile marketing campaign:

  • Follow all applicable laws and regulations with integrity to ensure actions align with words and values that demonstrate responsibility to all stakeholders, and avoid doing harm (AMA, 2025).
  • Avoid all deceptive practices by providing truthful and accurate information regarding all products and services, avoid misleading claims or false advertising.
  • A key action should be to compile an ethical marketing policy guide through written ethical standards and guidelines for marketing practices and including what claims can and cannot be made, data collection standards, and especially an internal consequence if violations are found (Flanagin, 2024)
  • Ensure that all marketing materials are reviewed and fact-checking pipeline before releasing.
  • Always obtain users consent to include communicating collection practices and how information will be used, and ensure users are aware and agree to all terms of service.
  • Always provide clearly accessible opt-out and unsubscribe options so users can mange their preferences of settings (Flanagin, 2024).
  • Handle all personal data responsibly with secure storage and comply with all relevant data protection regulations.

References

Abogado, R. (2023, December 29). Consequences of Noncompliance with Legislation by Companies: Explained Ordinance – Rey Abogado. King Lawyer. https://reyabogado.com/us/what-happens-if-a-company-doesnt-follow-legislation/

Allyn, B. (2022, November 14). Google pays nearly $392 million to settle sweeping location-tracking case. NPR. https://www.npr.org/2022/11/14/1136521305/google-settlement-location-tracking-data-privacy

AMA. (2025, July 15). Marketing Ethics. American Marketing Association. https://www.ama.org/marketing-ethics/

Delapuente, J. (2025, November 30). When Mobile Marketing Crosses the Line: Lessons From the FTC and What Brands Must Do Next. Jhonndelapuente. https://jhonndelapuente.wordpress.com/2025/11/30/when-mobile-marketing-crosses-the-line-lessons-from-the-ftc-and-what-brands-must-do-next/

Federal Trade Commission. (2021, September 9). Notices of Penalty Offenses. Federal Trade Commission. https://www.ftc.gov/enforcement/penalty-offenses

Flanagin, J. (2024, December 24). Ethical Marketing Guide: Best Practices for Ethical Marketers. Shopify. https://www.shopify.com/blog/ethical-marketing

FTC Secures Historic $2.5 Billion Settlement Against Amazon. (2025, September 25). Federal Trade Commission. https://www.ftc.gov/news-events/news/press-releases/2025/09/ftc-secures-historic-25-billion-settlement-against-amazon

Kroeck, L. (n.d.). What Are the Penalties If a Corporation Violates the Law? Legal Beagle. https://legalbeagle.com/what-are-the-penalties-if-a-corporation-violates-the-law.html

MORE THAN $5 MILLION IN REFUNDS SENT TO CONSUMERS AS A RESULT OF THE FTC’S ACTION AGAINST CEREBRAL OVER DECEPTIVE CANCELLATION PRACTICES. (2025, May 8). Nexis Uni; States News Service. https://advance-lexis-com.eu1.proxy.openathens.net/document/index?crid=87a2b79c-bdc5-489e-9575-38e030fe338f&pdpermalink=484ad029-77ce-48ad-87e7-5bfc20dc2d39&pdmfid=1519360&pdisurlapi=true

Marketing Advantage of Mobile Phones and Tablets

Blog:  Marketing Advantages of Mobile Phones and Tablets

The primary reason for accessing and using digital marketing channels on mobile phones and tablets are that they generally are within arm’s reach of customers at all times, thus allowing for timely and relevant messages.  There are over 6.7 billion mobile devices in use worldwide with an extended reach into most markets.  Mobile digital marketing allows for complete flexibility using omnichannel filters such as apps, social media, and websites.  Engaging with potential consumers at their preferred location and time allows for location-based market targeting to increase product sales and awareness.  Traditional marketing channels of TV, mail, or print ads is very expensive, time consuming, large environmental impact, difficult to measure effectiveness, and generalizes to a broad market with limited viewers (Racca, 2025).  A primary reason for its continued existence is that print ads continue to be a more trusted form of advertising, sometimes the material is kept for up to 17 days, and magazines can be collected to have longer shelf life.  Print ads are shown to have a longer view life by at least a double margin (Racca, 2025).

Use of mobile marketing enables personalized targeted campaigns to drive sales with easier reach to potential consumers.  Mobile marketing allows for increased brand awareness and increases point-of-sale conversions by using geo-fencing with reminder of product availability when they visit or are near a physical store.  Mobile devices are excellent tools to engage customers and ideal for them to use and manage loyalty programs that are offered or integrated into apps; thus, the consumer can easily track points and redeem rewards at their own leisure, fostering further brand loyalty.  Mobile channels can facilitate direct communication vis SMS marketing and allow promotional updates with push notifications as a direct communication line to consumers (Koehler, 2019).  Per Klaviyo, “Worldwide spending on mobile advertising achieved a 23% year-on-year growth in 2021.  Mobile ad spending is also expected to exceed $330 billion by the end of 2022” (Gilbert, 2022).

Mobile marketing campaigns can generate dialogue-marketing contacts and is replacing the term ‘direct marketing” in common speech.  Dialogue marketing is defined as “all marketing activities in which media is used with the intention of establishing an interactive relationship with individuals.  The aim is to initiate an individual, measurable response from the recipient”.

Rather than mass marketing techniques businesses must adapt to targeting groups of individual customers to encompass a specific niche.  Use of dialogue-oriented media reduces a campaigns high scattered losses, thus the need for internet-based communications in marketing, customer service, and even sales.  Use of interaction via multichannel mediums and make responding to their ads as simple as possible, such as:  helplines, pre-addressed envelopes, and even financial incentives such as discounts, early bird offers, discounts for referrals, and money-back if dissatisfied.  All of these elements can be measured and tracked for their success and return-on-investment (ROI).  Key-point-indicators (KPI) can easily be tracked with data analysis of metrics using many tracking tools such as Google Analytics, Piwik, and etracker.  In highly competitive markets, customer relationships create brand loyalty and decrease scattering loss though effective advertising and affective communications.  The cost-effectiveness of keeping customers with investment of dialogue marketing is much less expensive than recruiting new customers.  So, with the right message the perception reputation can be sustained and loyalty kept with personalized offers to regular customers, even if return feedback is not received (What is Dialogue Marketing, 2022).  Current dialogue marketing methods used are:

Customer loyalty is led by mobile marketing campaigns by tailoring content based on individual preferences and behaviors that resonate with users.  Successful use of mobile marketing can foster a deeper brand loyalty via interactive / immersive experiences.  Apps that require repeat interactions such as gamification can encourage community building among its users.  Seamless omnichannel experiences with mobile applications that integrate online and offline customer engagement, thus engaging customer touchpoints.  Brands that leverage this experience can connect deeply with their customers and lead to increased brand loyalty and advocacy (Hasson, 2025)

Some strategies to addressing the common constraints that mobile marketing faces are transparency regarding data collection and usage to build trust with a brand.  To reduce ad fatigue marketers should focus on providing value through personalized messaging to include frequency caps, deliver only requested relevant content, and most of all avoiding overexposure to ads.  Per Miller-Bernstein “Pop-up, banner, and other display ads have become so pervasive that many consumers are in the habit of ignoring them completely.  With a pop-up, for instance, you many only get your ad in front of a buyers’ eyes for as long as it takes them to find the button to close it.  Many Millennial and Gen Z generations use ad blockers and pop-up blockers when they browse’ (Racca, 2025).

References

Gilbert, N. (2022, April 15). Benefits and Advantages of Mobile Marketing: What You Need to Know. Financesonline.com. https://financesonline.com/benefits-and-advantages-of-mobile-marketing-what-you-need-to-know/

Hassan, S. (2025, January 6). The rise of mobile technology has transformed how brands connect with consumers. Mobile marketing, defined as promotional activities delivered through smartphones, tablets, and other mobile devices, has become a core strategy for modern businesses. Linkedin.com. https://www.linkedin.com/pulse/impact-mobile-marketing-consumer-engagement-shayaike-hassan-w00re/

Koehler, E. (2019, November 11). Marketing Advantages of Mobile Phones and Tablets. EK Marketing Blog by Ericka Koehler. https://ekoehler7.wordpress.com/2019/11/10/advantages-of-mobile-phones-and-tablets-as-a-marketing-tool-over-traditional-marketing-channels/

Racca, A. (2025, February 19). Are Print Ads Still Worth It? The Pros and Cons of Print Advertising in the Digital Age | Miller Bernstein. Miller Bernstein. https://millerbernstein.com/2025/02/19/are-print-ads-still-worth-it-the-pros-and-cons-of-print-advertising-in-the-digital-age/What is Dialogue Marketing? (2022, October 27). IONOS Digitalguide. https://www.ionos.com/digitalguide/online-marketing/online-sales/dialogue-marketing-interactive-relationships-with-customers