search query: @indexterm Quality / total: 1290
reference: 618 / 1290
| Author: | Rhee, B-D. |
| Title: | Consumer heterogeneity and strategic quality decisions |
| Journal: | Management Science
1996 : FEB, VOL. 42:2, p. 157-172 |
| Index terms: | PRODUCT DIFFERENTIATION QUALITY DECISION MAKING |
| Language: | eng |
| Abstract: | Most analytical models of product positioning prescribe quality differentiation as an equilibrium strategy in a variety of noncooperative situations. Products of similar qualities are often observed in the marketplace. This study presents an explanation for the existence of similar qualtites in a Bertrand framework. The study allows heterogeneity not only in marginal willingness to pay for quality, but along unobservable attributes as well. Choice is modeled in such a way that consumers consider both the quality and price of a product and their heterogeneous preferences along the unobservable attributes. However consumers choices are random along the unobservable attributes from firms' perspective, due to the intractability of the attributes. |
SCIMA