Business Commons^™

The Effects Of Advertised Exclusivity On Consumer Behavior, Danny Clyde Upshaw Jr.

Doctoral Dissertations

Retailers routinely counter price competition by matching or beating competitors' prices. However, in addition to offering price-matching guarantees many retailers are increasingly adopting a differentiation or product assortment strategy of using "advertised retailer exclusive products" (AREPs) that are not directly comparable to competitor offerings. Such goods may offer added utilitarian and hedonic benefits to the consumer. With this tactic, products are advertised and labeled as "exclusive," but the nature of the exclusivity may range no further than an exclusive label to more pronounced differences, such as unique or additional features. However, the effectiveness of such tactics at: (1) decreasing search …