Showing papers on "Signalling theory published in 2006"

An experimental study of brand signal quality of products in an asymmetric information environment

Abstract: Previous research regarding the effectiveness of signalling via brand name has focused on when and how brand-building costs will be recovered in future profit. In contrast to such a seller-incentive perspective, this study examines how the buyer interprets the signal via brand name, the effectiveness of signalling via brand name in terms of buyer-value perspective, and how the buyer’s reaction to the signal affects the seller’s decision to adopt the 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 online trading experiments, using the methodology of experimental economics, demonstrate that the function of brand fluctuates according to which market conditions prevail for brand and price, the extent of brand differentiation, and the magnitude of brand-building cost. 2005 Elsevier Ltd. All rights reserved.

Implications from Cue Utilization Theory and Signalling Theory for Firm Reputation and the Marketing of New Products

Abstract: The main research streams, which focus on signals, signalling theory and cue utilization theory stress the importance of a producers´ credibility or reputation as an important factor that determines a signals´ potential to reduce customers´ risks and to motivate customers to adopt a product. Prior empirical research focused on the isolated effect of cues like price, guarantees, advertising, or reputation on perceptions of quality of new products rather than on the impact of reputation on perceptions of other cues like advertising and bonding instruments, e.g. guarantees. This research focuses on the impact of reputation on the effectiveness of various types of information and bonding instruments which are said to depend on the character of the instrument. The major goal of this paper is to identify adequate strategies for an innovative producer with low reputation to credibly signal high quality.

A signalling theory of strategy.

Abstract: The article looks at business strategy. According to the authors, strategy should essentially be a dialogue between senior management and key shareholders and it should have a signalling reality co...

Implications from Cue Utilization Theory and Signalling Theory for Firm Reputation and the Marketing of New Products

Abstract: The main research streams, which focus on signals, signalling theory and cue utilization theory stress the importance of a producers´ credibility or reputation as an important factor that determines a signals´ potential to reduce customers´ risks and to motivate customers to adopt a product. Prior empirical research focused on the isolated effect of cues like price, guarantees, advertising, or reputation on perceptions of quality of new products rather than on the impact of reputation on perceptions of other cues like advertising and bonding instruments, e.g. guarantees. This research focuses on the impact of reputation on the effectiveness of various types of information and bonding instruments which are said to depend on the character of the instrument. The major goal of this paper is to identify adequate strategies for an innovative producer with low reputation to credibly signal high quality.