A discussion on price-diversified portfolios within the same organization.
Written in 2008; 964 words; 5 sources; APA; $ 34.95
Paper Summary:
This paper examines the determinants for organizations to offer both low and high price products. The author defines and discusses the four determinants: competition, technology, consumer heterogeneity and markets. The paper also gives examples of organizations adopting this approach and lists the possible reasons for them doing so.
From the Paper:
"Thus, a company famous for its luxurious products is not likely to start producing/selling cheap products under the same brand as the expensive one. Aston Martin is a good example for this case. The car brand has stood as a symbol for luxury lifestyle for a long time and between 1994 and 2007 it was a division of the Ford Motor company. In this interval Ford Motor never tried to manufacture a cheap vehicle under the same brand, which could have jeopardized the brand's image and indirectly its value."
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