scholarly journals Vertical Line Extension Decisions in a Competitive Market with Consumers’ Need for Product Uniqueness

2020 ◽  
Vol 2020 ◽  
pp. 1-17
Author(s):  
Jie Wang ◽  
Qin Su ◽  
Canyou Wang
Keyword(s):  
Utility Function ◽  
Vertical Line ◽  
Competitive Market ◽  
High Quality ◽  
Quality Differentiation ◽  
Emotional Factors ◽  
Line Extensions ◽  
Line Extension ◽  
Customized Products

One important reason for offering customized products is to satisfy consumers’ need for product uniqueness. In this paper, we take consumers’ unique preferences into account to examine how firms make decisions on vertical line extensions with introducing a customized product. This study develops the consumer’s utility function, which captures consumers’ behavioural and emotional factors, and the results show that the high-quality firm always introduces an upward extension without uniqueness sensitivity. However, introducing a downward extension may be more profitable especially when consumers have the high unique ness sensitivity. We also find that the upward extension of the high-quality firm does not intensify competition with the low-quality firm, but its downward extension will intensify the competition between two firms, whether with or without unique preferences. We also analyse the low-quality firm’s extension decisions when it faces a high-end competitor and find that the low-quality firm may change from introducing a downward extension to introducing an upward extension when intrafirm quality differentiation is small.

The impact of gender on the evaluation of vertical line extensions of luxury brands: a cross-national study

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jean Boisvert ◽  
Nicholas Jeremy Ashill
Keyword(s):  
Purchase Intentions ◽  
Vertical Line ◽  
Luxury Brands ◽  
Content Type ◽  
Luxury Brand ◽  
Line Extensions ◽  
Line Extension ◽  
Study Results ◽  
The Impact ◽  
Cross National

Purpose The purpose of this study is to assess the extent to which gender impacts the evaluation of vertical line extensions of luxury brands in a cross-national context. The topic of brand/line extensions has been investigated in the mainstream branding literature. On the other hand, the topic has received less attention in the luxury literature. At the same time, while research has examined brand/line extensions from an international perspective, the impact of gender on consumer purchase intentions of luxury downward line extensions in different countries has remained unexplored. Design/methodology/approach Based on an ANOVA design (2 extension types × 2 genders × 2 countries). The independent variables were ordered as follows: gender (male/female), vertical line extensions (upscale/downward) and country of living (France/USA). The purchase intention of the extension was chosen as the dependent variable. Findings The study results show that key differences exist between men and women regarding vertical luxury line extensions. For instance, women in both countries rate a new downward line extension of a luxury brand more positively than men. In contrast, although women evaluate a new upscale line extension of a luxury brand similarly to men in France, women are more positive than men in the USA. Also, US men rate an upscale extension less positively than their French counterparts. Finally, women in both countries rate luxury downward extensions more positively than men. Originality/value This study contributes to the literature of luxury brand management by examining how gender types process and respond to upscale and downward luxury line extensions versus purchase intentions in two different countries. This paper is unique as gender types are not often compared in previous research while fundamental distinctions exist, leading to significant differences. Practically, this study also provides key insights for marketing strategy development and adjustment for luxury manufacturers in terms of their target market, more specifically men versus women.

scholarly journals Relationship between environmental manufacturing practices and their competitive outcomes

2019 ◽  
Vol 48 (1) ◽  
pp. 1-10
Author(s):  
Syed Misbah Uddin ◽  
Chowdury M. L. Rahman ◽  
Nahian Ismail Chowdhury ◽  
Md. Parvez Shaikh ◽  
Fayeq Al-Amin
Keyword(s):  
Environmental Concern ◽  
Low Cost ◽  
Pollution Prevention ◽  
Green Manufacturing ◽  
Competitive Market ◽  
High Quality ◽  
Environmental Practices ◽  
Product Stewardship ◽  
Competitive Outcomes ◽  
The Impact

In today’s competitive market providing products only in low cost and high quality is not enough.  Environmental concern in manufacturing is also an important issue now. To attract investors and customers organizations need to practice environmental manufacturing. This study is focused to present the relationships between some specific environmental manufacturing practices and their relative specific competitive outcomes in the important and vast industry of garment’s knitting sector in Bangladesh. Although there are several studies on the impact of environmental practices on the organizations outcomes but they are less construable due to many limitations. This study explores the environmental manufacturing practices under two categories pollution prevention and product stewardship and shows their relative competitive outcomes and establishes the relation between them. Based on the surveys and research it is found that some competitive outcomes are positively affected by some of the practices. These findings are believed to motivate the companies to turn towards the green manufacturing.

To Extend or Not to Extend: Success Determinants of Line Extensions

1994 ◽  
Vol 31 (2) ◽  
pp. 243-262 ◽  
Author(s):  
Srinivas K. Reddy ◽  
Susan L Holak ◽  
Subodh Bhat
Keyword(s):  
Firm Characteristics ◽  
Line Extensions ◽  
Early Entry ◽  
Line Extension ◽  
Parent Brand ◽  
Extension Activity ◽  
Entry Timing ◽  
Symbolic Value ◽  
Using Data

The authors study the determinants of line extension success using data on 75 line extensions of 34 cigarette brands over a 20-year period to investigate the relative effects of brand, extension, and firm characteristics on the incremental market share of brand line extensions. The econometric model also captures the extent of cannibalization of parent brand sales that may have occurred due to the line extension's introduction. The authors also explore the role of a brand's symbolic value as a factor in line extension success. Results indicate that parent brand strength and its symbolic value, early entry timing, a firm's size, and distinctive marketing competencies, as well as the advertising support allocated to line extensions, contribute positively to the success of line extensions. Their findings suggest that, in this industry, cannibalization effects of line extension activity may have been limited and line extensions into earlier subcategories actually may have helped the parent brand. Even with cannibalization, the incremental sales generated by the extension seem to be reason enough to make a line extension strategy viable.

scholarly journals Differentiation of Optical Signals with Dielectric Ridges on Top of a Slab Waveguide

Vestnik RFFI ◽  
2019 ◽  
pp. 35-45
Author(s):  
Victor A. Soifer ◽  
Nikita V. Golovastikov ◽  
Leonid L. Doskolovich ◽  
Evgeni A. Bezus ◽  
Dmitry A. Bykov
Keyword(s):  
Numerical Simulation ◽  
Oblique Incidence ◽  
Spatial Differentiation ◽  
Slab Waveguide ◽  
High Quality ◽  
Optical Signals ◽  
Quality Differentiation ◽  
Analog Computing ◽  
Planar Structures ◽  
Simulation Results

We propose two simple planar structures that enable spatial differentiation of the profile of optical beams propagating in a slab waveguide. The differentiator operating in transmission consists of a single subwavelength dielectric ridge on the surface of a slab waveguide. The differentiator operating in reflection consists of two grooves on the surface of a slab waveguide. In both cases the differentiation is performed at oblique incidence of the beam and is associated with the resonant excitation of the considered structures eigenmodes localized at the ridge or at the ridge between two grooves. It is shown that the required balance between the differentiation quality and the amplitude of the differentiated beam can be achieved by manipulating the quality factor of the resonance. The presented numerical simulation results demonstrate high-quality differentiation. The proposed differentiator may find application in ultrafast analog computing and signal processing systems.

Le bois du Jura – de la tradition à l'appellation d'origine contrôlée (AOC) | Wood from Jura – from tradition to a label of origin (AOC)

2006 ◽  
Vol 157 (7) ◽  
pp. 260-262
Author(s):  
Pierre Bonhôte
Keyword(s):  
Competitive Market ◽  
High Quality ◽  
The Creation ◽  
Costs Of Production ◽  
Forest Legislation ◽  
National Borders

Within the context of a very competitive market characterised by prices that hardly cover the costs of production the creation of a label of origin (AOC) for the resinous wood of the Jura region seem to offer a promising way profiling a well-known product of high quality. According to an increasing number of scientific studies carried out within the framework of an Interreg project, the Swiss association for an AOC «wood from Jura»and its French counterpart have submitted an application for the recognition of an AOC label for the basic transformed products of resinous wood from this region. In return for an adaptation planned in Swiss forest legislation, an AOC could be granted on both sides of the national borders around 2010.

Reciprocal transfer of brand associations between service parent brands and upward line extensions

2016 ◽  
Vol 26 (2) ◽  
pp. 222-243 ◽  
Author(s):  
Jean Boisvert
Keyword(s):  
Survey Methodology ◽  
Brand Associations ◽  
Service Line ◽  
Content Type ◽  
Line Extensions ◽  
Line Extension ◽  
Parent Brand ◽  
Reciprocal Transfer ◽  
Brand Information ◽  
Over Time

Purpose – The purpose of this paper is to investigate the extent to which the accessibility of established parent brand information and the diagnosticity of newly launched horizontal and upward service line extensions affect transfer and reciprocal transfer of brand associations. Design/methodology/approach – A field study using a survey methodology based on a 2×2 experimental random design was conducted with a sample representative of the target population of an established bank in Eastern Canada. Two levels of parent brand accessibility (high/low) and two levels of line extension (upward/horizontal) were tested. Pretests were conducted, and the analysis of results was done using a three-point-in-time confirmatory factorial analysis for each cell. Findings – The findings indicate that for a newly launched horizontal service line extension, when accessibility of an established parent brand is high, information transfer and reciprocal transfer of brand associations is strong and complete. When accessibility is low, transfer is strong but incomplete, leading to partial dilution of the parent brand. In the case of a newly launched upward service line extension, for both high- and low-accessibility contexts, only key diagnostic parent brand associations transfer to the extension. Reciprocal transfer is strong, leading to a significant dilution of the parent brand. Research limitations/implications – Other kinds of extensions (e.g. downward, distant), other types of services, and consumer goods could be tested to observe the extent to which transfer works. Practical implications – This study provides key findings to managers who are responsible for launching newly created service line extensions (horizontal and upward). When evaluating a new vertical service line extension, consumers actively process the available information at hand (e.g. print advertising, point-of-purchase materials), but key diagnostic associations of the parent brand tend to persist over time. Thus, marketers must be careful when using or not using parent brand information during launch, though an upward service line extension is likely to dilute the parent brand’s equity, either positively or negatively. Originality/value – This paper brings new insights to the service branding literature with respect to the dynamics of transfer of brand associations between service line extensions (horizontal and upward) and their parent brands. Drawing on the accessibility-diagnosticity framework, it closes an important theoretical knowledge gap regarding the persistence over time of accessible vs diagnostic parent brand information in the mechanisms of transfer of brand associations to and from different types of service extensions.

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