Linking Reputations through Umbrella Branding

Miklos-Thal, Jeanine (2008): Linking Reputations through Umbrella Branding.

Abstract

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, firms that already sell a high (low) quality product have stronger (weaker) incentives to invest in developing another high quality product than new entrants.

• Item Type: MPRA Paper
• Language: English
• Keywords: reputation, umbrella branding, brand extensions, signaling
• Subjects: M - Business Administration and Business Economics ; Marketing ; Accounting ; Personnel Economics > M3 - Marketing and Advertising > M31 - Marketing; L - Industrial Organization > L1 - Market Structure, Firm Strategy, and Market Performance > L15 - Information and Product Quality ; Standardization and Compatibility

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