Asymmetric quality‐tier competition: an alternative explanation

Purpose – This paper aims to offer an alternative explanation for asymmetric quality‐tier competition. Design/methodology/approach – A conceptual framework based on quality‐price tradeoff is used in the study to derive research hypotheses and scanner panel data are used for empirical validation. Findings – The paper finds that the concept of tradeoffs offers a simple explanation for asymmetric competition in favor of high quality brands; as the quality differential increases, asymmetry increases; as the price differential increases, the asymmetry decreases. Practical implications – The framework and findings can inform pricing strategies for brands in different quality tiers. Originality/value – The paper offers an alternative explanation for asymmetric competition.