Umbrella branding and the provision of quality
نویسندگان
چکیده
منابع مشابه
Umbrella Branding and the Provision of Quality
Consider a two-product firm that decides on the quality of each product. Product quality is unknown to consumers. If the firm sells both products under the same brand name, consumers adjust their beliefs about quality subject to the performance of both products. We show that if the probability that low quality will be detected is in an intermediate range, the firm produces high quality under um...
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Umbrella Branding and External Certification
In a market environment with random detection of product quality, a firm can employ umbrella branding as a strategy to convince consumers of the high quality of its products. Alternatively, a firm can rely on external certification of the quality of one or both of its products. We characterize equilibria in which umbrella branding fully or partially substitutes for external certification. We al...
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This paper develops a theory of umbrella branding as a way to link the reputations of otherwise unrelated products. My analysis predicts that umbrella branding can credibly signal positive correlation between the qualities of the included products to consumers, but cannot certify high quality or signal negative quality correlation. Moreover, whenever umbrella branding signals perfect positive q...
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ژورنال
عنوان ژورنال: International Journal of Industrial Organization
سال: 2008
ISSN: 0167-7187
DOI: 10.1016/j.ijindorg.2007.03.004