Consumer informedness and hyperdifferentiation: An empirical test of the 'trading down' and 'trading out' hypotheses

Robert J. Kauffman, Ting Li, Eric Van Heck, Peter Vervest

Research output: Chapter/Conference proceedingConference proceedingAcademicpeer-review

4 Citations (Scopus)

Abstract

Consumer informedness plays a critical role in determining consumer choice. Companies now use hyper-differentiation and resonance marketing strategies to benefit from the long-tail. We test the theory of consumer informed-ness in a field experiment. The data are from two stated choice experiments in the pubic transport industry in the Netherlands. The increasing implementation of smart card and mobile technology provides opportunities for service providers to achieve new 'best practices' in revenue management. The results provide evidence for trading down (purchase the product with the lowest price) and trading out behavior (purchase the product that suits a specific need). They also have implications for pricing and revenue management for public transport market.

Original languageEnglish
Title of host publicationProceedings of the 42nd Annual Hawaii International Conference on System Sciences, HICSS
DOIs
Publication statusPublished - 2009
Event42nd Annual Hawaii International Conference on System Sciences, HICSS - Waikoloa, HI, United States
Duration: 5 Jan 20099 Jan 2009

Publication series

SeriesProceedings of the 42nd Annual Hawaii International Conference on System Sciences, HICSS

Conference

Conference42nd Annual Hawaii International Conference on System Sciences, HICSS
Country/TerritoryUnited States
CityWaikoloa, HI
Period5/01/099/01/09

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