Persistent Link:
http://hdl.handle.net/10150/187351
Title:
Exclusivity strategies in pricing and brand extension.
Author:
Pantzalis, Ioannis.
Issue Date:
1995
Publisher:
The University of Arizona.
Rights:
Copyright © is held by the author. Digital access to this material is made possible by the University Libraries, University of Arizona. Further transmission, reproduction or presentation (such as public display or performance) of protected items is prohibited except with permission of the author.
Abstract:
The primary goal of this research is to explore the issue of brand exclusivity. It focuses on why and under what circumstances consumers value exclusive brands, as well as on the strategies by which managers can best create and maintain brand exclusivity while using it to maximize profits. The dissertation consists of two studies. In the first study, exclusivity is examined as a function of limited supply, and the research (a) identifies the conditions under which limited supply is valued most by the consumers, and (b) determines the optimal quantity and price for limited-edition brands. We model the goodwill transfer from an exclusive, limited-edition brand to a lower-end brand with the same family brand name. This goodwill transfer results in the optimal supply level for the limited-edition brand depending not only on its price-demand curve, but also on the price-demand curve of the lower-end brand. The model is analyzed to develop hypotheses regarding consumer choice behavior for different consumption motivations and consumption situations. We test these hypotheses in an experiment. The experiment shows that limited supply for the high-end brand results in a transfer of status symbolism and a higher preference for the lower-end brand extension. In the second study exclusivity is examined as a function of high price and the research (a) explores how the diffusion of the brand in different social groups affects exclusivity perceptions and value among members of these groups, and (b) determines the price that maximizes profits given the interdependence of diffusion in the two populations. In the second study, we model the adoption of a price-based exclusive brand by two populations that represent two distinct social groups with different price-demand elasticities. The brand is targeted to the upper income group (target group), but is exclusive for the lower income group (outside group). The diffusion of the brand in the two populations is interdependent and is affected by the social distance between the target group and the outside group. This process is modelled using an extension of the Bass model. The interdependence of the diffusion process is tested in an experiment where relative diffusion in the two groups and the social distance between them are manipulated.
Type:
text; Dissertation-Reproduction (electronic)
Degree Name:
Ph.D.
Degree Level:
doctoral
Degree Program:
Business Administration; Graduate College
Degree Grantor:
University of Arizona
Committee Chair:
Chakravarti, Dipankar; Rao, Ambar G.

Full metadata record

DC FieldValue Language
dc.language.isoenen_US
dc.titleExclusivity strategies in pricing and brand extension.en_US
dc.creatorPantzalis, Ioannis.en_US
dc.contributor.authorPantzalis, Ioannis.en_US
dc.date.issued1995en_US
dc.publisherThe University of Arizona.en_US
dc.rightsCopyright © is held by the author. Digital access to this material is made possible by the University Libraries, University of Arizona. Further transmission, reproduction or presentation (such as public display or performance) of protected items is prohibited except with permission of the author.en_US
dc.description.abstractThe primary goal of this research is to explore the issue of brand exclusivity. It focuses on why and under what circumstances consumers value exclusive brands, as well as on the strategies by which managers can best create and maintain brand exclusivity while using it to maximize profits. The dissertation consists of two studies. In the first study, exclusivity is examined as a function of limited supply, and the research (a) identifies the conditions under which limited supply is valued most by the consumers, and (b) determines the optimal quantity and price for limited-edition brands. We model the goodwill transfer from an exclusive, limited-edition brand to a lower-end brand with the same family brand name. This goodwill transfer results in the optimal supply level for the limited-edition brand depending not only on its price-demand curve, but also on the price-demand curve of the lower-end brand. The model is analyzed to develop hypotheses regarding consumer choice behavior for different consumption motivations and consumption situations. We test these hypotheses in an experiment. The experiment shows that limited supply for the high-end brand results in a transfer of status symbolism and a higher preference for the lower-end brand extension. In the second study exclusivity is examined as a function of high price and the research (a) explores how the diffusion of the brand in different social groups affects exclusivity perceptions and value among members of these groups, and (b) determines the price that maximizes profits given the interdependence of diffusion in the two populations. In the second study, we model the adoption of a price-based exclusive brand by two populations that represent two distinct social groups with different price-demand elasticities. The brand is targeted to the upper income group (target group), but is exclusive for the lower income group (outside group). The diffusion of the brand in the two populations is interdependent and is affected by the social distance between the target group and the outside group. This process is modelled using an extension of the Bass model. The interdependence of the diffusion process is tested in an experiment where relative diffusion in the two groups and the social distance between them are manipulated.en_US
dc.typetexten_US
dc.typeDissertation-Reproduction (electronic)en_US
thesis.degree.namePh.D.en_US
thesis.degree.leveldoctoralen_US
thesis.degree.disciplineBusiness Administrationen_US
thesis.degree.disciplineGraduate Collegeen_US
thesis.degree.grantorUniversity of Arizonaen_US
dc.contributor.chairChakravarti, Dipankaren_US
dc.contributor.chairRao, Ambar G.en_US
dc.contributor.committeememberKannan, P.K.en_US
dc.contributor.committeememberHill, Jane H.en_US
dc.contributor.committeememberMatter, Fred S.en_US
dc.identifier.proquest9620410en_US
All Items in UA Campus Repository are protected by copyright, with all rights reserved, unless otherwise indicated.