Construal based marketing tactics for high quality versus low price market segments

Abstract

Purpose

The purpose of this study is to propose differential marketing tactics for high-quality products versus low-price products by building on construal level theory.

Design/methodology/approach

Two studies were conducted, one using students and another using data collected from more than 7,000 online auctions.

Findings

When consumers consider high-quality products, they use more abstract mental models, and when they consider low-price products, they use more concrete mental models. Differentiation based on primary features product is more effective for products that are positioned on quality, while differentiation based on the secondary features is more effective for products that are positioned on price. Also, marketing efforts to attract attention are more effective for products positioned on quality than those positioned on price.

Research limitations/implications

This research focused on how consumers use different mental models for considering high-quality versus low-price product offerings but did not examine whether a given segment/consumer uses different models in considering high-quality versus low-price alternatives.

Practical implications

Managers wishing to reinforce a high-quality position should focus on marketing efforts compatible with consumers’ high level construal by enhancing and highlighting the primary features, and drawing consumers’ attention to their product offerings. Managers wishing to reinforce a low-price positioning should focus on marketing efforts that are compatible with consumers’ low level construal by enhancing and highlighting secondary features.

Originality/value

This research makes an important theoretical link between construal theory and brand positioning.

Citation

Love, E. and Okada, E.M. (2015), "Construal based marketing tactics for high quality versus low price market segments", Journal of Product & Brand Management, Vol. 24 No. 2, pp. 172-181. https://doi.org/10.1108/JPBM-11-2013-0444