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Stretching Firm and Brand Reputation
Oleh:
Cabral, Luis M. B.
Jenis:
Article from Bulletin/Magazine
Dalam koleksi:
The Rand Journal of Economics vol. 31 no. 4 (2000)
,
page 658-673.
Topik:
brand
;
stretching firm
;
brand reputation
Ketersediaan
Perpustakaan Pusat (Semanggi)
Nomor Panggil:
RR10.4
Non-tandon:
1 (dapat dipinjam: 0)
Tandon:
tidak ada
Lihat Detail Induk
Isi artikel
I consider an adverse selection model of product quality. Consumers observe the performance of the firm's products, and product performance is positively related to the firm's (privately observed) quality level. If a firm is to launch a new product, should it use the same name as its base product (reputation stretching), or should it create a new name (and start a new reputation history)? I show that for a given level of past performance (reputation), firms stretch if and only if quality is sufficiently high. Stretching thus signals high quality.
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