Consider the Retailer That Follows a "Good" and "Better" Approach

Essay

Consider the retailer that follows a "good" and "better" approach in stocking its product lines. That is, whenever possible, the retailer offers a good brand with a reasonable price and a better brand with a more expensive price. This retailer is now considering the addition of a third brand to its product lines. Some managers want this third brand to be a cheaper, lower quality version of the good brand. Other managers, however, want this third brand to be a higher quality, more expensive version of the better brand. What are the pros and cons of each position?