Linking Reputations through Umbrella Branding
نویسندگان
چکیده
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 quality correlation, rms that already sell a high (low) quality product have stronger (weaker) incentives to invest in developing another high quality product than new entrants. Keywords: reputation, umbrella branding, brand extensions, signaling JEL classi cation codes: L14, L15, M31 William E. Simon Graduate School of Business Administration, University of Rochester, Carol Simon Hall 3-141, Rochester, New York 14627, email: [email protected], phone: 585-276-5166.
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Article history: In a framework of repeatedReceived 12 April 2007 Received in revised form 2 July 2008 Accepted 10 July 2008 Available online 17 July 2008
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