Asymmetries in the sequential learning of brand associations: Implications for the early entrant advantage

The highlighting effect occurs when the order in which consumers learn about brands determines the strength of association between these brands and their attributes. In four experiments, we find that consumers more strongly associate common attributes with early learned brands and unique attributes with late-learned brands. These findings imply an advantage for late entrants when unique attributes offer a higher value than attributes that are common to late and early entrants. We extend an attention-based model of associative learning to accommodate se-quential learning of brand associations and predict when late versus early entrants will be able to sustain an advantage. When Microsoft introduced its Zune MP3 player tocompete with Apple’s iPod, it offered attributes that were common to iPod (e.g., high resolution display) while emphasizing attributes that were unique (e.g., wireless com-munication between two Zune players). Microsoft’s strategy to create a product of common plus unique attributes is frequently used for overcoming an early entrant’s advantage