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A provider-cost/patron-effort schema for classifying products

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Abstract

Since the commodity-oriented thinkers of marketing’s early history, marketers have sought a valid schema for classifying products. Currently, the marketing literature is dominated by two types of schemata for classifying products: product-based and consumer cost-based. Despite marketing tenets such asexchange is the focal notion of marketing andgood marketing theory integrates the perspectives of firms and consumers, no existing schema embodies either exchange or a dual firm/consumer perspective. After reviewing the existing classificational schemata, one such schema is proposed and evaluated. The two classifying dimensions of this schema are providers’ relative variable costs (PRVC) and patrons’ relative effort (PRE). Crossing high and low levels of PRVC and PRE yields four product categories: low cost/effort, patroneffort heavy, provider-cost heavy, and high cost/effort.

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Author information

Authors and Affiliations

  1. the College of Business and Economics at New Mexico State University, USA

    Michael R. Hyman (associate professor of marketing)

  2. the College of Business and Economics at Christopher Newport University, Newport News, VA

    Varinder M. Sharma (assistant professor of marketing)

  3. Smeal College of Business Administration at Pennsylvania State University, University Park, PA

    Parthasarathy Krishnamurthy (doctoral student in marketing)

Authors
  1. Michael R. Hyman
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  2. Varinder M. Sharma
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  3. Parthasarathy Krishnamurthy
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Additional information

His work has appeared inJournal of Marketing, Journal of Business Research, Journal of Retailing, Journal of Advertising, International Journal of Advertising, Business Horizons, Business Ethics: A European Review, and other journals. His current research interests include marketing theory, advertising, and ethics. He received his Ph.D. in marketing from Purdue University.

will soon receive his Ph.D. in marketing from the University of North Texas. His work has appeared inAcademy of Management Journal, as well as the proceedings of the American Marketing Association, the Decision Science Association, and the Society of Franchising. His research interests include building and testing models in international marketing, consumer behavior, and marketing management.

His current research interests include self-referent processing of advertisements and consumer satisfaction.

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Hyman, M.R., Sharma, V.M. & Krishnamurthy, P. A provider-cost/patron-effort schema for classifying products. JAMS 23, 15–25 (1995). https://doi.org/10.1007/BF02894608

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