A Valid typology or Just Another two-By-two? Revisiting the Price-quality-Map

In scientific research, the price-quality-map has been used in several settings. However, the concept itself has not received a lot of attention by empirical researchers. To close this research gap, we examined the major implicit assumptions made when employing the map. (1) In a laboratory free sorting task, we identify brands as a major categorization mechanism used by consumers. (2) In a subsequent online free sorting task, we find that consumers organize brand information in relatively few categories (median of 5 for automobile brands and median of 4 for fashion brands). (3) To determine the dimensions along which consumers place their brand categories, an online confirmatory multidimensional scaling will be performed. (4) The link of a brand’s position in the map with financial performance will be analyzed using secondary data.