The Impact of “Lidl’s” Comparative Advertising on Lithuanian Consumers’ Loyalty toward Retail Brands Compared in the Advertisement

Abstract

Comparative advertising, which directly contrasts competing brands to enhance the position of the sponsored brand, is being increasingly used in the marketing practice. While the effects of such advertising on the promoted brand have been extensively studied, its impact on consumer loyalty toward the disparaged competitors remains underexplored. Existing research suggests that comparative advertising may either reduce trust and loyalty toward the targeted brand or trigger a defensive reaction that reinforces loyalty. This issue is especially relevant in the Lithuanian retail context, where empirical data on consumer responses to comparative
advertising are lacking.
The aim of this article is to determine the impact of comparative advertising on consumer loyalty toward disparaged competing private label brands. The study analyses the concept of comparative advertising, assesses its  influence on brand loyalty, and presents Lithuanian consumers’ perceptions of Lidl comparative advertisement targeting Maxima and Iki. The study employed analysis, synthesis, generalization, and deduction methods, along with a qualitative research method, specifically, semi-structured focus group interviews.
The results of the study showed that consumers’ emotional connections with a brand are important for consumer loyalty. It has been found that the comparative advertising implemented by Lidl did not have a significant negative impact on the loyalty to Maxima and Iki exhibited by consumers loyal to these brands. Respondents who felt an emotional attachment to these brands were critical of comparative advertising, which suggests that loyal consumers are not inclined to change their attitude towards a brand because of an unfavorable comparative advertising message. According to the study participants, comparative advertising did not have a negative impact on their loyalty to brands competing with the promoted brand that were portrayed negatively in this advertising campaign.