Premium
The Effect of Premium Cotton on the Pricing of Textile Products: A Marketplace Analysis of Sheets
Author(s) -
Norum Pamela S.
Publication year - 2011
Publication title -
family and consumer sciences research journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.372
H-Index - 31
eISSN - 1552-3934
pISSN - 1077-727X
DOI - 10.1111/j.1552-3934.2011.02075.x
Subject(s) - price premium , textile , license , business , variety (cybernetics) , hedonic pricing , textile industry , economics , marketing , willingness to pay , microeconomics , econometrics , mathematics , computer science , archaeology , history , operating system , statistics
The development of genetically modified cotton seeds that produce cotton with a variety of enhanced characteristics has increased the need for a greater understanding of factors underlying the marketing of premium cottons. The purpose of this study is to determine what price difference, if any, exists between sheets made from conventional cotton and premium cotton. A hedonic framework provided the theoretical basis for the empirical analysis. Information on prices and characteristics of sheets was collected from the Internet sites of retailers who had a license for Supima ® cotton. Sheets made from premium cotton had significantly higher prices than sheets made with conventional cotton. The results contribute to the literature on fiber branding and pricing and provide insight on factors that influence the price consumers are asked to pay for sheets.