Jack of All Trades or Master of One? Product Differentiation and Compensatory Reasoning in Consumer Choice

15 Pages Posted: 17 Apr 2006

Abstract

This research examines consumer reactions to two common positioning strategies: a specialized-positioning strategy in which an option is described by a single feature, and an all-in-one strategy in which an option is described by a combination of features. The empirical data reported in this article demonstrate that a product specializing on a single attribute is perceived to be superior on that attribute relative to an all-in-one option, even when this attribute is exactly the same for both options. It is further shown that the observed devaluation of the all-in-one option can be mitigated by making this option inferior on another attribute.

Keywords: product, differentiation, compensatory, reasoning, consumer, choice

Suggested Citation

Chernev, Alexander, Jack of All Trades or Master of One? Product Differentiation and Compensatory Reasoning in Consumer Choice. Journal of Consumer Research, March 2007, Available at SSRN: https://ssrn.com/abstract=895558

Alexander Chernev (Contact Author)

Northwestern University - Department of Marketing ( email )

Kellogg School of Management
2001 Sheridan Rd.
Evanston, IL 60208
United States

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