Final answer:
Category points-of-parity are shared brand associations which help to overcome perceived weaknesses and ensure a brand is seen as a legitimate player within its category, particularly important in scenarios where businesses do not compete on price, service, or quality alone.
Step-by-step explanation:
Category points-of-parity refer to brand associations that are not necessarily unique to the brand but are shared with other brands. These are often involved in the brand’s strategic positioning and are essential in ensuring that the brand is considered a legitimate contender within its category. These associations help negate any perceived weaknesses the brand may have in comparison to its competitors.
Considering that businesses do not always cluster together in the way a simplistic model might predict, these points-of-parity play a significant role. They can be crucial for brands that are not competing primarily on factors like price, service, or quality. Instead, by focusing on these shared values or features, a business can align itself closely with the consumer expectations from the category it belongs to.
This strategy is particularly useful when the similarities or differences between subjects are not obvious to the consumer. Establishing points-of-parity can create a sense of familiarity and trust. Let's consider the restaurant example: although an expensive, elegant restaurant and a fast-food chain are vastly different, they may focus on points-of-parity such as food safety, hygiene, or sourcing of ingredients, which are basic expectations for all food services regardless of their market segment.