Brand signal quality of products in an asymmetric online information environment: An experimental study

Abstract

Previous research regarding the effectiveness of brand name signalling has focused mainly on when and how marketers will recover costs. This study reverses this trend by examining how buyers may interpret signals via the brand name, the effectiveness of signalling via brand name in terms of buyer-value perspectives and how buyers' reactions to signals affect sellers' decisions to adopt a signalling strategy. Signalling theory and concepts from consumer-based branding research are used to suggest how to evaluate the effectiveness of signalling via brand name in the context of the consumer market -a market in which information is asymmetric. Findings from a number of repeated experiments, using the methodology of experimental economics, demonstrate that the function of a brand fluctuates according to which market conditions prevail for brand and price, the extent of brand differentiation and the magnitude of brand-building costs.

The Effects of Corporate Social Responsibility (CSR) Fit and CSR Consistency on Company Evaluation: The Role of CSR Support

“…This explains why CSR support is caused by the consumers' perceived self-identity and why high CSR support is associated with a high degree of personal relevance and identity. Meanwhile, signaling theory presents that company information is not equally available to all consumers at the same time, and information asymmetry occurs [56,57]. These information asymmetries can result in consumers' low valuations of company.…”

Conceptualization and measurement of millennial's social signaling and self‐signaling for socially responsible consumption

“…Signaling allows individuals to relay information about themselves without overtly stating that information to observers (Bennett & Chakravarti, 2008). Marketing scholars have gained insights from signaling theory in understanding how consumers use marketed products in their signaling efforts (Dunham, 2011;Tsao, Berthon, Pitt, & Parent, 2011). Consumers' choices and product decisions signal something about their character and personality to themselves or are used to affirm a selfidentity (Dhar & Wertenbroch, 2012;Townsend & Sood, 2013).…”

Consumers' Sentiments and Popularity of Brand Posts in Social Media: The Moderating Role of Up-votes

“…For instance, we can clearly observe Information Asymmetry in the current status of online marketing [22]. When the seller provides product price with no more information on an online shopping website, Information Asymmetry exists in such a circumstance.…”