Strikes Against Emerging Competition: Preventing Backfires by Respecting Consumers’ Needs
(A2021-94361)

AUTHORS

Eline L.E. De Vries, University Carlos III of Madrid; Hyunjung Crystal Lee, University Carlos III of Madrid

ABSTRACT

Economies are changing with the emergence of on-demand businesses (e.g., DoorDash and Uber). While many countries are suffering from strikes by traditional businesses against these competing initiatives, the marketing literature lacks knowledge on consumer responses towards strikes against competing businesses, like anti-on-demand business strikes. In line with the growth of competing businesses stemming from better served consumer needs, the present research finds that consumers perceive anti-on-demand business strikes as being ignorant of their wishes and thus unfair towards both themselves and on-demand business initiatives. This prevents empathy with the strikers and drives consumers away from traditional businesses by harming their preference for traditional over on-demand businesses. The research thus demonstrates that strikes against competing businesses may backfire and presents what can be done to prevent the alienation of consumers by gaining their understanding.