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Narrow Focusing: Why the Relative Position of a Good in Its Category Matters More Than It Should

Author

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  • France Leclerc

    (Graduate School of Business, University of Chicago, 5807 S. Woodlawn Avenue, Chicago, Illinois 60637)

  • Christopher K. Hsee

    (Graduate School of Business, University of Chicago, 5807 S. Woodlawn Avenue, Chicago, Illinois 60637)

  • Joseph C. Nunes

    (Marshall School of Business, University of Southern California, Accounting 304, Los Angeles, California 90089-0443)

Abstract

This research examines whether a low-ranking member in a high-status category (e.g., a low-end model of a high-end brand) or a high-ranking member in a low-status category (e.g., a high-end model of a low-end brand) is favored, holding the objective qualities of the items constant. Brand equity research suggests that the quality of a brand is more important than the ranking of a product within a brand. Our research documents a robust —whereby a high-ranking product in a low-status category is favored over a low-ranking product in a high-status category even when information on competing categories is made available. We explain this effect in terms of narrow focusing and evaluability, and we identify boundary conditions of the effect.

Suggested Citation

  • France Leclerc & Christopher K. Hsee & Joseph C. Nunes, 2005. "Narrow Focusing: Why the Relative Position of a Good in Its Category Matters More Than It Should," Marketing Science, INFORMS, vol. 24(2), pages 194-205, August.
    • Handle: RePEc:inm:ormksc:v:24:y:2005:i:2:p:194-205
    DOI: 10.1287/mksc.1040.0090
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    References listed on IDEAS

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    9. Olga M. Khessina & Samira Reis, 2016. "The Limits of Reflected Glory: The Beneficial and Harmful Effects of Product Name Similarity in the U.S. Network TV Program Industry, 1944–2003," Organization Science, INFORMS, vol. 27(2), pages 411-427, April.
    10. Sevdalis, Nick & Harvey, Nigel, 2006. "Determinants of willingness to pay in separate and joint evaluations of options: Context matters," Journal of Economic Psychology, Elsevier, vol. 27(3), pages 377-385, June.
    11. Chadwick J. Miller & Daniel C. Brannon & Jim Salas & Martha Troncoza, 2021. "Advertising, incentives, and the upsell: how advertising differentially moderates customer- vs. retailer-directed price incentives’ impact on consumers’ preferences for premium products," Journal of the Academy of Marketing Science, Springer, vol. 49(6), pages 1043-1064, November.
    12. Sharif, Marissa A. & Oppenheimer, Daniel M., 2021. "The effect of categories on relative encoding biases in memory-based judgments," Organizational Behavior and Human Decision Processes, Elsevier, vol. 162(C), pages 1-8.
    13. Ikuo Ishibashi & Noriaki Matsushima, 2009. "The Existence of Low-End Firms May Help High-End Firms," Marketing Science, INFORMS, vol. 28(1), pages 136-147, 01-02.
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