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Detail
ArtikelStretching 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
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  • Perpustakaan Pusat (Semanggi)
    • Nomor Panggil: RR10.4
    • Non-tandon: 1 (dapat dipinjam: 0)
    • Tandon: tidak ada
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Isi artikelI 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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