A common assumption in marketing is the wider variety of product a corporation has, the better for the consumer: more product - more choices. Companies often develop a line extension to broaden consumer range through product attributes including quality, function and design. These developed attributes within the product are not always optimal for the consumer. As a result, companies often become entangled in having a price higher than the cost and benefit of the products. This essay aims to analyze the consumer value of line extension products and how these evaluations relate to extended line product pricing. A quantitative approach has been used, while data has been collected through structured questions with multiple-choice answers. Various theories concerning the products of different levels, consumer attitudes and pricing of line extension products have been assessed for this essay. The data used for survey purposes is from three different surveys in three different grocery stores. The results reveal a connection between the customer evaluation and pricing, although not as strong as initially thought. The price of organic coffee and whole meal pasta, in relation to its respective core, was relatively the same. Also, the customer evaluation of these products was equally related (See Figure 21). Generally a corporation prices products according to specific attributes. Lactose-free milk was an exception by being priced 157% higher than the other line extension products. This variation in price happens without correlation to consumers’ evaluation.
| Identifer | oai:union.ndltd.org:UPSALLA1/oai:DiVA.org:sh-2717 |
| Date | January 2009 |
| Creators | Perez, Faviana, Krasniqi, Ilirian |
| Publisher | Södertörns högskola, Institutionen för ekonomi och företagande |
| Source Sets | DiVA Archive at Upsalla University |
| Language | Swedish |
| Detected Language | English |
| Type | Student thesis, info:eu-repo/semantics/bachelorThesis, text |
| Format | application/pdf |
| Rights | info:eu-repo/semantics/openAccess |
Page generated in 0.0019 seconds