Signaling Unobservable Product Quality through a Brand Ally

Rao, Akshay R.; Lu, Qin; Ruekert, Robert W.

doi:10.2307/3152097

Cited by 406 publications

(219 citation statements)

References 15 publications

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“…Two brand names with similar or complementary attributes on a single product imply that a firm borrows equity from the partner firm's brand (Rao and Ruekert, 1994;Spence, 1973;Swaminathan et al, 2015). Customer perspective research suggests that co-branding alliances serve as intended market signals of innovation, product quality, and credibility (Rao et al, 1999). The perception of a high level of brand fit drives consumer affect (Baumgarth, 2004;Sénéchal et al, 2014;Simonin and Ruth, 1998).…”

Section: Signaling Theorymentioning

confidence: 99%

“…Third, spillover effects are especially likely in co-branding alliances with high brand and product fit and asymmetric brand equity distributions (Simonin and Ruth, 1998;Swaminathan et al, 2012). Finally, co-branding alliances effectively enhance consumer evaluations of co-brand quality and credibility (Rao et al, 1999;Voss and Tansuhaj, 1999). They have a positive signaling effect (Aghdaie et al, 2012).…”

Section: Prior Researchmentioning

confidence: 99%

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Consumer perceptions of co-branding alliances: Organizational dissimilarity signals and brand fit

Decker

Baade

2016

J Brand Manag

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This study explores how consumers evaluate co-branding alliances between dissimilar partner firms. Customers are well aware that different firms are behind a co-branded product and observe the partner firms' characteristics. Drawing on signaling theory, we assert that consumers use organizational characteristics as signals in their assessment of brand fit and for their purchasing decisions. Some organizational signals are beyond the control of the co-branding partners or at least they cannot alter them on short notice. We use a quasi-experimental design and test how cobranding partner dissimilarity affects brand fit perception. The results show that co-branding partner dissimilarity in terms of firm size, industry scope, and country-of-origin image negatively affects brand fit perception. Firm age dissimilarity does not exert significant influence. Because brand fit generally fosters a benevolent consumer attitude towards a co-branding alliance, the findings suggest that high partner dissimilarity may reduce overall co-branding alliance performance.

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Section: Signaling Theorymentioning

confidence: 99%

Section: Prior Researchmentioning

confidence: 99%

Consumer perceptions of co-branding alliances: Organizational dissimilarity signals and brand fit

Decker

Baade

2016

J Brand Manag

View full text Add to dashboard Cite

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“…Among the various extrinsic cues, brands are fundamental to the consumer evaluation process (Dawar and Parker 1994;Rao et al 1999). From a signaling perspective, brands provide signals of unobservable quality (Rao and Ruekert 1994;Rao et al 1999;Wernerfelt 1988) that might complement or compete with organic labels in terms of their effects on product quality judgments (Gray-Lee et al 1994). …”

Section: Organic Labels As Signals Of Quality In Competition With Othersmentioning

confidence: 99%

“…Similar to Rao et al (1999), we conducted our experiment near the checkouts of Monoprix retail stores. In addition, we manipulated differences in brand equity by using existing brands that, at the time of the study, used an organic labelling strategy.…”

Section: Product and Brand Manipulationsmentioning

confidence: 99%

“…As Thøgersen (2002) noted, if other relevant information competes for the consumer's attention, consumers may easily fail to notice relevant labels in the buying situation. In particular, we investigate the combined effect of two cues, the label and the trade brand, according to a cobranding theoretical framework (Geylani et al 2008;Janiszewski and Van Osselaer 2000;Park et al 1996;Rao and Ruekert 1994;Rao et al 1999). We investigate the marginal value of an organic label that appears in combination with a brand, including whether that value varies for brands with high versus low equity.…”

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confidence: 99%

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Why Might Organic Labels Fail to Influence Consumer Choices? Marginal Labelling and Brand Equity Effects

2011

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International audienceAn organic label offers a market signal for producers of organic food products. In Western economies, the label has gained high recognition, but organic food still represents a small part of total food consumption, which raises questions about the label's efficacy. By considering organic labels as a signal of quality for consumers, this article studies how this signal interacts with brand signals when both are visible to consumers, applying a cobranding framework. This research examines the moderating effect of the brand on organic label effects. In a 2 × 2 experimental design using real consumers (N = 122) in a shopping context, it found that, depending on brand equity, the marginal effect of organic labelling information in terms of perceived product quality varies. In particular, when brand equity is high (low), the organic label appears less (more) effective. However, regardless of the brand equity level, an organic label makes the environmentally friendly attribute salient, which has a positive impact on perceived quality. Pertinent implications for marketing and public policy are discussed

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Interactive effects of brand reputation and ESG on green bond issues: A sustainable development perspective

2022

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This paper shows that brand reputation alone may not be sufficient to help firms successfully issue green bonds and that they may need superior corporate social responsibility performance in the form of high ESG (Environmental, Social, and Governance) scores to unlock the full potential of their brand reputation. Using a sample of 338 international green bond issues across 108 unique firms, we found significant positive effects of ESG disclosure score and its interaction brand reputation on the issuance of green bonds while controlling for other variables, such as fixed effects of industry, region, and time. We also show that it is the S (Social) component of ESG and the interactions of its E (Environmental) and G (Governance) components with brand reputation which drive successful green bond issuance. Besides extending the current research on the impact of brand reputation and ESG on green bonds, these results also have important managerial implications for analysts, fund managers, and firms planning to raise green capital.

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Signaling Unobservable Product Quality through a Brand Ally

Cited by 406 publications

References 15 publications

Consumer perceptions of co-branding alliances: Organizational dissimilarity signals and brand fit

Consumer perceptions of co-branding alliances: Organizational dissimilarity signals and brand fit

Why Might Organic Labels Fail to Influence Consumer Choices? Marginal Labelling and Brand Equity Effects

Interactive effects of brand reputation and ESG on green bond issues: A sustainable development perspective

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