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Bottled Water and Key Differentiation Variables

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Need ideas for writing a paper on bottle water. Bottled water sells at least 200 times the price of tap water, with substantial price differentials between different brands. What are the key differentiation variables that determine the price premium that can be obtained for bottled water?

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This detailed solution discusses how bottled water is able to sell for at least 200 times the price of tap water, with substantial price differentials between different brands. It outlines the key differentiation variables that determine the price premium that can be obtained for bottled water. The solution includes links and examples.

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Bottled water sells at least 200 times the price of tap water, with substantial price differentials between different brands. What are the key differentiation variables that determine the price premium that can be obtained for bottled water?

The price differentials for bottled water are primarily perception. Consumers perceive that the water is purer than tap water. In addition, it is packaged and easy to transport. Some consumers buy it because it is a packaged alternative to caloric drinks, as if buying something packaged gives them a treat that is healthy and low calorie.
Consumer perceive higher quality because of the bottled water's packaging - think about the fancy bottles of VOSS (http://www.aquamaestro.com/innerview.asp?catid=33) It ...

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Sally Baldwin, Ed.D
Education
  • BA, University of Southern California
  • MSS, United States Sports Academy
  • Ed.D, Boise State University
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