Corona is a mass market, inexpensive beer in its native Mexico. But in the US, it is marketed as "fun, sun, beach, vacation in a bottle," says Harvard Business School marketing professor Rohit Deshpandé. And it represents one of many products that has overcome what Deshpandé calls the "provenance paradox." "Provenance paradox," is when companies in emerging markets struggle to sell their products at a reasonably high price because of where the product comes from. That is, consumers are reluctant to pay a lot for something that comes from a less developed economy.
Deshpandé explains the paradox and how companies can overcome consumer bias in this Harvard Business Idea Cast:
Read more about the provenance paradox from Deshpandé here.
Posted
12-16-2010 10:59 AM
by
Graham Griffith