News Article and Analyses

Presented by: Natacha Yarbrough

Instructor: Prof. Jan AhernsDue Date: July 15, 2010

Article SummaryDesigner eye glasses generate huge

revenues. Consumers are brand conscious and prefer

high end designer frames over “generic” eye glasses despite the lack of differences between the two.

July 14, 2010

http://online.wsj.com/article/SB10001424052748704518904575365362932852610.html?mod=WSJ_hp_mostpop_emailed#articleTabs%3Darticle

Marketing AnalysesQuestion:How are the higher end companies able to

persuade consumers to purchase their products over theirinexpensive competitors?

Answers:1. Perceived Value Pricing – customer perceives

higher quality due to company appeal.

2. Price-Quality Inferences - “You get what you pay for.”

Marketing AnalysesQuestion:1. The article states that majority of these

high end designer eye glasses are manufactured and/or sold by the same company. If this is the case, how are these brand name companies able to maintain a strong customer following over the long term?

Answers:2. Brand Association – Consumers attached

based feelings or emotions.

2. Satisfies “Customer Wants” –Fulfillment of psychological needs.

Something to Think About………The article failed to mention major retail discounters thatsale “designer” frames at adeep discount.

Questions:

1. How do these high-end brand name marketers preserve and maintain

the reputation of their brand name and product when they are sold at a discount?

2. Given the various locations that designer glasses can be purchased,

who is the marketer’s target customer?