What is a potential disadvantage of a trading-up strategy in marketing?

A trading-up strategy involves elevating a brand's offerings by introducing premium products or services, often at higher price points. One potential disadvantage of this approach is that it may alienate budget-conscious customers. When a brand shifts focus to more expensive options, customers who are more price-sensitive might feel excluded or perceive the brand as no longer catering to their needs. This can lead to dissatisfaction among existing customers who valued the brand for its affordability and may prompt them to seek alternatives that align better with their financial constraints.

In contrast, increasing brand loyalty, expanding market reach, and enhancing customer perception are generally positive outcomes associated with a trading-up strategy. However, the core issue remains that this strategy can create a divide within the customer base, particularly if those who prioritize budget considerations feel neglected or unwelcomed in the brand's new positioning.