Points-of-parity are sometimes more important than points-of-differentiation

10 October 2022 08:59

Points-of-parity are sometimes more important than points-of-differentiation

Traditional marketing literature directs brand managers to highlight the attractive and distinguishing attributes of their brands, the points-of-differentiation. However, a recent study suggests that brand managers should first assure that the brand is not perceived as poorer than the competition on any important attributes (Park and Chang 2022).

Researchers find that, consumers place greater weight on attributes for which a brand scores lower than the competition compared to superior attributes. This finding is more pronounced for consumers with low brand experience. Consumers with extensive brand experience tend to place greater weight on superior attributes (points-of-differentiation).  Thus, when designing strategies for attracting new customers (low brand experience), brand managers should examine brand perceptions in the target groups, identify inferior attributes, and make necessary improvements until perceptions of these attributes are comparable to the competition (parity).

Reference

Park, H. Y., & Chang, S. R. (2022). When and how brands affect importance of product attributes in consumer decision process. European Journal of Marketing, Vol. 56, 1 - 25.