Underdog For All Or Not? - the Homogenous Price Strategy Vs. the Heterogeneous Price Strategy

The original question of this study is whether the underdog strategy of an unknown brand that is new to a global market is always good. Toyota and Hyundai had positioned with an image of low price when they entered the U.S. market, because American consumers were not familiar to these brands. I predict that the heterogeneous price strategy rather than the homogeneous low price strategy in which the price of all product lines are lower than that of the established brands will be more likely to enhance consumer’s willingness to purchase, because the heterogeneous strategy could reduce uncertainty of quality of the unknown brand.

Citation:

JUNGSIL CHOI (2009) ,"Underdog For All Or Not? - the Homogenous Price Strategy Vs. the Heterogeneous Price Strategy", in AP - Asia-Pacific Advances in Consumer Research Volume 8, eds. Sridhar Samu, Rajiv Vaidyanathan, and Dipankar Chakravarti, Duluth, MN : Association for Consumer Research, Pages: 333-334.