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Wednesday, July 22, 2020 | History

2 edition of Brand alliances as information about unobservable product quality found in the catalog.

Brand alliances as information about unobservable product quality

Akshay R. Rao

Brand alliances as information about unobservable product quality

by Akshay R. Rao

  • 121 Want to read
  • 4 Currently reading

Published by Marketing Science Institute in Cambridge, Mass .
Written in English


Edition Notes

Report no.97-100.

StatementAkshay R. Rao, Lu Qu, Robert W. Ruekert.
SeriesWorking paper
ContributionsQu, Lu., Ruekert, Robert W., Marketing Science Institute.
ID Numbers
Open LibraryOL17160601M

Defining a political brand alliance: the conservative and liberal democrat coalition. By P Reeves. Download PDF (80 KB) Abstract. The purpose of this paper is to posit a definition of a political brand alliance, and thereby advance the political marketing and brand marketing literature. Signalling Unobservable Product Quality Through a. Brand Alliance Dependency and Exclusivity: An Empirical Investigation, in: (). Brand Alliances as Signals of Product Quality, in: (). Co Branding als Strategieoption der Markenpolitik. Signaling Unobservable Product Quality through a Brand Ally, in.

awareness, brand association and product quality on brand loyalty and repurchase intention. This study therefore, stand to immensely contribute new knowledge to the existing body of brand management literature in Africa – a context that is often most neglected by some researchers in developing countries. – While previous research has shown a positive influence of a brand ally or a warranty, published research has not explored the effects of using multiple types of quality signals. The purpose of this paper is to explore the joint effect of a default‐independent signal (i.e. a brand ally) combined with a default‐contingent signal (i.e. a warranty) on the focal brand's evaluations.

brand alliance, could be an efficient mean to reveal and create credible information about this unobservable quality. Brand names are then conceptualized as signals and the brand alliance is a mechanisms where “the second brand (the brand ally) can assist in credibly signaling high quality to. Brand Alliances as Signals of Product Quality Octo | Ashkay R. Rao, Robert W. Ruekert | When two or more branded products are integrated, like IBM and Intel or Bacardi Rum and Coca-Cola, they are perceived as linked, or jointly branded.


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Brand alliances as information about unobservable product quality by Akshay R. Rao Download PDF EPUB FB2

Get this from a library. Brand alliances as information about unobservable product quality. [Akshay R Rao; Lu Qu; Robert W Ruekert; Marketing Science Institute.].

The familiarity and prestige attached to one brand name in a brand alliance can indeed enhance the credibility of a quality claim when product quality is unobservable. In addition, the degree to which the familiar brand in a brand alliance is vulnerable to consumer sanction has an important bearing on its credibility as a quality "signal.".

Brand Alliances as Signals of Product Quality. Ashkay R. Rao and Robert W. Ruekert Octo Reading Time: 33 min (more than percent of its book value), or employee (high or low intelligence), when the true level of the attribute (quality or intelligence) is unobservable and immutable.

The second problem, that of moral hazard. The authors test this assertion in the context of the emerging practice of brand alliances. Results from several studies are supportive of the premise and suggest that, when evaluating a product that has an important unobservable attribute, consumers' quality perceptions are enhanced when a brand is allied with a second brand that is perceived Cited by: In this article, the authors examine the circumstances in which brand names convey information about unobservable quality.

They argue that a brand name can convey unobservable quality credibly when false claims will result in intolerable economic by: Brand alliances as information about unobservable product quality.

Rao, Akshay R., () RESEARCH NOTES AND COMMUNICATIONS - Signaling Unobservable Product Quality Through a Brand Ally. Rao, Akshay R., (). Brand alliances as signals of product quality. Article. Jan ; In this article, the authors examine the circumstances in which brand names convey information about unobservable quality.

In study 1, an ad of a fictitious airline (primary brand) announced brand alliance information. Based on the quality levels, three brands in the same category (hotel) or different product categories (hotel, rental car, or another airline) were chosen as secondary brands since these product categories have relatively equal level of service fit.

brand alliances may signal unobservable product quality. Moreover, James () suggests that, the value of the alliance can be questioned when low levels of product quality are signaled by the alliance. On the other hand, prior research indicated that consumers' perceptions and attitudes towards each of brands involved in an alliance.

Studies have found that the pre-existing attitudes to the parent brands, fit between their product categories and perceived fit in the brands themselves as important drivers of a co-brand success. Despite its importance, most studies have treated brand fit as a. Brand extension or brand stretching is a marketing strategy in which a firm marketing a product with a well-developed image uses the same brand name in a different product category.

The new product is called a spin-off. Organizations use this strategy to increase and leverage brand equity (definition: the net worth and long-term sustainability just from the renowned name).

Abstract. The brand alliance is an important area within the brand sector. Prior research on the brand alliance has focused either on alliances between one unknown brand and one established brand or on alliances between two well-known brands, this implies that the brand community plays a key role in the brand alliance.

Brand Alliance Definition. Brand Alliance is an agreement between the companies that combine two or more individual brands, products or other related assets with an objective to achieve raised awareness in the market and in the minds of the consumers.

Brand Alliance is a crucial part of a business strategy that provides ample of benefits to all the parties involved in the deal ensuring higher.

how consumers process brand-alliance information are whose quality is unobservable prior to purchase but is observable after Similarly, a brand name is considered a product. The brand alliance which plays an important informational role for consumers is a double-edged sword.

It has positive spillover effects on the individual brands, at the same time, it has potential drawbacks. Based on exploring formation and implementation of the brand alliances strategy, this paper sums brand alliances’ risk factors.

Rao A.R., Ruekert R.W. (): Brand Alliances as Signals of Product Quality. "Sloan Management Review", Vol. 36 (Fall). Simonin B.L., Ruth J.A. (): Is a Company Known by the Company it Keeps.

Assessing the Spillover Effects of Brand Alliances on Consumer Brand Attitudes. "Journal of Marketing Research", Vol. 35 (1). alliances, focusing mostly on positive effects of brand alliances on the members’ brand equity (Washburn et al.

; Halim and Zulkarnain, ). Rao and Ruekert, () found that brand alliances can increase perceived quality of a weak brandespecially in case of a service brand with an unobservable quality.

In general, a second brand. unobservable quality. Brands names as signals of unobservable quality. If the claim associated with a brand is one of high quality and the brand turns out to be of poor quality, consumers can punish the brand (Montgomery and Wernerfelt ; Wernerfelt ).

Driven principally by. It could result in positively influencing consumers’ quality perceptions of unobservable product attributes of a partner brand (Rao et al., ), may improve the image of one or the other partners and may signal greater product quality (Park, Jun, Shocker, ), may have more effect on less familiar brands than on more familiar brands.

Consumers usually infer unobservable product quality by processing multiple-quality cues in the environment. Prior research considering the simultaneous effects of marketing cues on consumer quality perceptions is sparse. Despite the growing importance of third-party information, research examining its simultaneous effects with marketing cues on consumers’ decision making is especially absent.

Signalling theory explains how attitudes are formed in relation to unobservable product/service quality under conditions of information asymmetry. The buyer has less information about the product than the seller and therefore makes inferences about the unobservable quality of a product (e.g., durability, performance) from the information provided.

One hypothesis advanced in the brand alliance literature is that a high equity brand ally can signal relevant market information more effectively than an unknown focal brand (Rao & Ruekert, ).

If a priori product quality is unobservable, credible signals are effective (Rao, Qu, & .The second explores the difficulties of introducing a brand extension product. The third examines the difficulties of arranging a brand alliance. The papers illustrate the benefits of the quality signaling perspective for improving our understanding of these issues and enhancing our resultant predictions.