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Signaling Unobservable Product Quality through a Brand Ally
Abstract
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 losses. These losses can occur for two reasons: (1) losses of reputation or sunk investments and (2) losses of future profits that occur whether or not the brand has a reputation. 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 to be vulnerable to consumer sanctions. The authors discuss the theoretical and substantive implications for the area of brand management.
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Cites
The Market for "Lemons": Quality Uncertainty and the Market Mechanism
Akerlof, G. A. (1970) · The Quarterly Journal of Economics · doi:10.2307/1879431 · Cited by 23,016
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Metadata
- Authors
- Rao, A. R., Qu, L., & Ruekert, R. W.
- Venue
- Journal of Marketing Research
- Publisher
- SAGE Publications
- Published
- 1999-05
- Volume
- 36
- Issue
- 2
- Pages
- 258-268
- ISSN
- 0022-2437 (ISSN-L)
- 1547-7193
- OpenAlex
- W2334317552
- Cited by
- 963
- References
- 1
- FWCI
- 31.45
- Type
- journal article
- Language
- en
- Open access
- closed
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Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.