Reputation and Advertising of Collective Brand Members in the Wine Industry: The Moderating Role of Market Share

Abstract This paper analyzes the nonlinear relationship between advertising investment and reputation of collective brand members in an experience goods industry, as well moderating role their market share within brand. The central assumption is that quality has a positive effect on until threshold reached, after which becomes negative. change slope explained by information sets (firm reputation) used consumers to reduce uncertainty, leads weaker motivation for firm invest advertising. In addition, scale economies mean negatively moderates curvilinear investment. results sample 176 companies Spanish industry (i.e., winemaking) 2004 2014 show inverted U-shaped members. also this relationship. (JEL Classifications: M31, M37, Q13)