The Dyad Approach: Action / Reaction between Leader and Challenger in Retailing

Our aim in this paper is to examine and predict the behavior and the competitive interaction between leader and challenger firms. Specifically,we exploreperceptions of market leaders and challengerstowards competition. Second, we try to explain the influence of competitive actions on the nature of these reactions. The study’s implications for managersare to help them preserve a competitive advantage in the hypermarket business by detecting actions that do not induce reactions.