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Book Summary (Lite) of Trading Up

Book Summary (Lite) of Trading Up

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Why do people happily pay $6 for a Panera Panini instead of $3 for a sandwich at the deli?

Or $28 for a Victoria’s Secret bra instead of $12 for a generic brand?

Or $30,000 for a BMW instead of $20,000 for a Chevy?

Trading up has become a fact of life.
Why do people happily pay $6 for a Panera Panini instead of $3 for a sandwich at the deli?

Or $28 for a Victoria’s Secret bra instead of $12 for a generic brand?

Or $30,000 for a BMW instead of $20,000 for a Chevy?

Trading up has become a fact of life.

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Published by: Business Book Summaries on Mar 23, 2010
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Trading Up | Michael J. Silverstein and Neil Fiske
 About the Authors 
  
hy do people happily pay for a anera anini insteadof  for a sandwich at the delir  for a ictorias ecretbra instead of  for a genericbrandr  for a  instead of  fora hevyrading up has becomea fact of lifeonsumers today are willing to pay asignificant premium for goodsand services that are emotionally important to them and that deliverthe perceived values of qualityperformance and engagementut in other categories thatarent emotionally importantthey become bargain hunters apassionate ercedes driver willshop at arget every weekend aconstruction worker who splurgeson a  set of allaway golf clubs will also buy storebrandgroceries
NEW LUXURY IS MORETHAN MARKETING
ew uxury good cannotbe imagined developedmanufactured distributed ormarketed followingconventional middlemarket businessattitudes or practices –although many businessassume they can beompanies assumethat the ew uxury consumer will beseduced by a high pricepoint but ew uxury consumers do not automatically assume that if it costs more it mustbe better hey are sophisticatedenough to evaluate the technicaland functional benefits of a productand to trust their own emotionalreactions to it e heard overand over again from consumersthat the most expensive entry in acategory is not always the bestew uxury is much more thana marketing exercise although
 Mr. Silverstein joined The Boston Consulting Group in 1980. His second book, Treasure Hunt, was  published in May 2006 and has received critical acclaim. With Kate Sayre,he is coauthor of a third book, Women Want More,which is being published inSeptember 2009. Neil Fiske was named Chief Executive Officer in June  2007. He was recognized as “Marketer of the Year” and “Retailer of the Year” in 2004 and 2005 by Women’s Wear Daily.
ublisherenguin ooks     pages
December 2009
By Michael J. Silverstein and Neil Fiske, Penguin Books, 2003
Trading Up
The New American Luxury  About the Book 
 
Business
ummaries 
lite
 
Trading Up | Michael J. Silverstein and Neil Fiske
marketing is of course a key part of the processut ew uxury goods are not created solely inthe marketing hey are created through all themanagement disciplines – and often throughunconventional marketing methods
THE PRACTICES OF NEW LUXURY 
ew uxury leaders and their companies follow a set of management practices that are differentfrom those of conventional or ld uxury goodscreators sing them ew uxury companieshave shattered conventional beliefs in nearly allaspects of product creation and distributionincluding ideas about price ceilings price rangesbrand extendibility consumer sophisticationmarket stability and the innovation cascade
1. Never underestimate the customer. 2. Shatter the price-volume demand curve. 3. Create a ladder of genuine benefits.4. Escalate innovation, elevate quality, and deliver a flawless experience.5. Extend the price range and positioning of the brand.6. Customize your value chain to deliver on the benefit ladder.7. Use influence marketing; seed your success throughbrand apostles.8. Continually attach the category like an outsider.
 ust as ew uxury has arisen as the result of the confluence of social changes and businesscapabilities its spread will be further enabled by anumber of factors
TRENDS IN NEW LUXURY 
reater globalization and influence of overseasmarkets s the uropean nion continues toexpand and accept new member nations andas hina and other sian countries becomeincreasingly welcoming to both businesses andtravellers the tradingup phenomenon willbecome more globally influenced onsumers will discover new tastes and styles ideas andinterests and look for their mericanized versionsback home usinesses will have greater access atlower cost to ideas and supply chain services incountries throughout the worldeightened role of the eb andecommerce commerce is currently a minorsource of revenue for ew uxury creators butit is growing fast and contributing to sales andbrand growth in many ways beyond the directsales of brick and mortar storesnfluence of solo females oung singlesrocket in a relatively small number of categoriesbut divorced women told us they rocket in asmany as thirty different categorieseniors as heavy spenders eniors representan enormous potential market that ew uxury goods creators have yet to fully tap here is anopportunity to better serve the senior travel market with clothing luggage health care products andservices food supplements photo and electronicimaging systems travel planning and supportservices and moreextgeneration consumers smarter andmore sophisticated than ever t is the juniorsaged six to eighteen however who represent thegreatest potential for continuing and expandingthe tradingup phenomenon hey are interestedin learning travel extensively and are highly attuned to brands and products
BusinessSummaries.com
The Nutshell 
 
Trading Up | Michael J. Silverstein and Neil Fiske
2009 BusinessSummaries.com
What was luxurious and differenttoday becomes the standardbrand of tomorrow.
BusinessSummaries.com

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