Journal article
MARKET SEGMENTATION STRATEGIES OF MULTIPRODUCT FIRMS -super-
Journal of Industrial Economics, Vol.54(1), pp.125-149
Journal of Industrial Economics
2006
Abstract
Abstract We analyze a multiproduct duopoly and ask whether firms should offer general purpose products or tailor their offerings to fit specific consumer needs. Offering a targeted product has two effects: utility increases for some consumers due to increased fit, whereas utility decreases for others due to increased misfit. Previous work has not considered these two effects jointly and has therefore not been able to capture the tradeoff inherent in market segmentation. We show that in addition to the degree of fit and misfit, the intensity of competition and the fixed cost of offering an additional product determine firms' market segmentation strategies. Copyright Blackwell Publishing Ltd. 2006.
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Details
- Title
- MARKET SEGMENTATION STRATEGIES OF MULTIPRODUCT FIRMS -super-
- Creators
- Ulrich DoraszelskiMichaela Draganska
- Publication Details
- Journal of Industrial Economics, Vol.54(1), pp.125-149
- Series
- Journal of Industrial Economics
- Publisher
- Wiley Blackwell
- Resource Type
- Journal article
- Language
- English
- Academic Unit
- Marketing
- Identifiers
- 991021810268604721