Measuring Price and Quality Competition

David J. Curry

50 citations0/0 files storedJournal of Marketing

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Consumer Market Behavior and Pricing Customer Service Quality and Loyalty Consumer Behavior and Marketing Influence

Abstract

Portfolio management requires precise measures of price and quality competition across relevant lines. A methodology is proposed that uses the Law of Comparative Judgment to transform ordinal comparisons between firms into reliable price and quality scales. Results are presented for five broadline manufacturers and fifteen subsidiaries competing in eight product classes in major appliances. The scale values and subsequent interpretations are substantiated by two major trade studies commissioned by the appliance industry. Implications for integrating quality considerations into the strategic planning process are discussed.

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References

1958Theory and Methods of Scaling 1952Quality-Control Handbook.1973Marketing Management: Analysis, Planning and Control 1983Design and Analysis of Simulated Consumer Choice or Allocation Experiments: An Approach Based on Aggregate Data 1981Assessing Measurement Error in Key Informant Reports: A Methodological Note on Organizational Analysis in Marketing 1983Product Quality, Cost Position and Business Performance: A Test of Some Key Hypotheses 1982The Reliability and Validity of Key Informant Data from Dyadic Relationships in Marketing Channels 1959Theory and Methods of Scaling.

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1987Pricing Strategies and Residential Property Selling Prices 1996Competitive Advantage, Quality Strategy and the Role of Marketing 1987Customer service as a competitive tool 1997Dynamics of the relationship between product features, quality evaluation, and pricing 1989The impact of corporate size and strategy on competitive pricing 2001

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