Role of nonprice variables in intertier competition

K. Sivakumar, Cheryl Nakata, Praveen Aggarwal, Ravindra Chitturi, Nevena Koukova

Research output: Contribution to journalArticlepeer-review

1 Scopus citations

Abstract

This study examines the role of nonprice variables in intertier competition (low-tier versus high-tier brands). Specifically, we examine the asymmetric impact of nonprice variables, such as features, displays, and prior product experience, on brand choice between tiers. Prior research has established that high-tier brands benefit disproportionately from price promotions. From an analysis of scanner panel data for two product categories, we show that low-tier brands benefit disproportionately more than high-tier brands from enhancements in nonprice variables.

Original languageEnglish (US)
Pages (from-to)351-368
Number of pages18
JournalJournal of Marketing Theory and Practice
Volume17
Issue number4
DOIs
StatePublished - Sep 1 2009

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