Using context effects to increase a leader's advantage: What set of alternatives should be included in the comparison set?

Based on behavioral decision-making literature, we suggest that including specific alternatives in comparison sets may increase the perceived relative advantage of dominant brands. In three experiments we specifically explored the impact of adding different types of brands to comparison ads. We compared individuals' responses to ads presenting only two brands (advertised/comparison), to their responses when introducing a third dominated brand. Results suggest that dominating brands may benefit from adding asymmetrically dominated brands. Introducing such brands resulted in participants perceiving the dominating brand as having a greater relative advantage and a higher justified price. Additional marketing implications for leading brands are discussed.