Increasing attractiveness of high-end products

Pontes, Nicolas (2014) Increasing attractiveness of high-end products. In CLAV – Congresso Latino-Americano de Varejo, 23-24 October 2014, São Paulo, Brazil. (Unpublished)


An important decision brand managers have to make when positioning their products in a retail setting is to whether price new line extensions at parity or let products vary in the price/quality spectrum. Despite the growing interest in vertical line extension issues, there has been little research investigating how product-line length affects extension favorability. Therefore, this paper investigates the framing effect that a product line price structure has on consumer judgments of vertical extensions and, in particular, of upscale extensions. A basic proposition of this research is that the parent brand price range affects the perceived or psychological distance between extension and parent brand, influencing extension favorability ratings. In two experiments, it is shown that positioning an upscale extension in the context of a wide product-line will lead to higher consistency perceptions between the parent brand and a new upscale extension than an equivalent upscale extension positioned in the context of a narrow parent brand product-line.

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ID Code: 92139
Item Type: Conference Paper
Refereed: Yes
Additional URLs:
Keywords: price structure, vertical extensions, high-end products, upscale extensions
Subjects: Australian and New Zealand Standard Research Classification > COMMERCE MANAGEMENT TOURISM AND SERVICES (150000) > MARKETING (150500)
Divisions: Current > QUT Faculties and Divisions > QUT Business School
Current > Schools > School of Advertising, Marketing & Public Relations
Copyright Owner: Copyright 2014 The Author
Deposited On: 21 Jan 2016 03:28
Last Modified: 23 Jan 2016 07:35

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