Toward understanding sophisticated markets and consumers: a win-win strategic alternative

Abstract

Purpose The purpose of this study is to conceptually address the understanding of certain consumers and businesses that show new dynamics, including a heightened interest in quality and the concomitant development of entities and mechanisms designed to ensure certain standards as well as an increased level of involvement of the consumer with the product. These segments are identified and labeled as sophisticated markets. Design/methodology/approach Through a literature review following a conceptual model methodology, this study poses eight research propositions to seek a more profound and comprehensive understanding of this type of market that could potentially benefit several industries. This study explores and discusses some of the essential differences of sophisticated markets with a twofold purpose: to recognize the existence of sophisticated markets as a distinct category and suggest issues that may constitute interesting further research works. Findings The process of sophistication might occur in different industries. This study poses implications of sophisticated markets to better understand consumers and business through research propositions that can be classified into two main domains: consumer–firm relationships and communicational implications. Originality/value Previous studies addressing luxury or specialized markets have not considered these terms to be sufficient to describe what we propose be labeled as a sophisticated market. This study addresses this gap in literature and proposes a streamline of research that pursues a deeper understanding of this phenomenon.