LucidSW - 1:33 pm on Sep 13, 2011 (gmt 0)
It's not a question of right. It's a question that you need to differentiate yourself. If you simply copy, you are not different. You also are not testing. What makes you think that the competitor's ad is the best way to go?
I don't think exact domains get a major boost as you say. I know the real boost will be mainly from what your ad says, regardless of the domain.
Why don't you build yourself a brand? I think that's much better. When asked "where did you get those fabulous shoes?", would it not be better to say at Hush Puppies dot com than brown men's shoes dot com?
Maybe it's just me but an exact domain name seems very artificial, forced, fishy and thus something to try and avoid. Would you rather want to do business with Lucid Web Marketing dot com or ppc management services dot com? I think I'm building my brand with the first domain, building trust and recognition, not just a domain that is the service I offer and not even the only service offered.