Signaling advertising by multiproduct firms
Autor(a) principal: | |
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Data de Publicação: | 2011 |
Outros Autores: | |
Tipo de documento: | Artigo |
Idioma: | eng |
Título da fonte: | Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
Texto Completo: | http://hdl.handle.net/10174/3126 https://doi.org/10.1007/s00182-011-0279-5 |
Resumo: | We consider the use of advertising expenses as quality signals in multiproduct firms, extending previous results on single product firms. In our model, a firm introduces sequentially two products whose qualities are positively correlated.We investigate whether there exist information spillovers from the first to the second market. We show that, when correlation is high, the equilibrium in market 2 depends on the quality reputation the firm has gained in market 1. Moreover, if a firm with a high-quality product 1 wants to separate from its low-quality counterpart, it needs to advertise more in this market than if the qualities of the two products are unrelated. This advertising level signals not only high quality in the first market, but also the likely quality of the second product. Thus, advertising in the first market has information spillovers in the second market. |
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Signaling advertising by multiproduct firmsQuality signalingAdvertisingMultiproduct firmsWe consider the use of advertising expenses as quality signals in multiproduct firms, extending previous results on single product firms. In our model, a firm introduces sequentially two products whose qualities are positively correlated.We investigate whether there exist information spillovers from the first to the second market. We show that, when correlation is high, the equilibrium in market 2 depends on the quality reputation the firm has gained in market 1. Moreover, if a firm with a high-quality product 1 wants to separate from its low-quality counterpart, it needs to advertise more in this market than if the qualities of the two products are unrelated. This advertising level signals not only high quality in the first market, but also the likely quality of the second product. Thus, advertising in the first market has information spillovers in the second market.Springer2012-01-09T11:53:34Z2012-01-092011-01-01T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articlehttp://hdl.handle.net/10174/3126http://hdl.handle.net/10174/3126https://doi.org/10.1007/s00182-011-0279-5engDepartamento de Gestão, Universidade de Évoracpires@uevora.ptmcatalao@ist.utl.pt639Pires, CesaltinaCatalão-Lopes, Margaridainfo:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2024-01-03T18:40:04Zoai:dspace.uevora.pt:10174/3126Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-20T00:58:39.738843Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse |
dc.title.none.fl_str_mv |
Signaling advertising by multiproduct firms |
title |
Signaling advertising by multiproduct firms |
spellingShingle |
Signaling advertising by multiproduct firms Pires, Cesaltina Quality signaling Advertising Multiproduct firms |
title_short |
Signaling advertising by multiproduct firms |
title_full |
Signaling advertising by multiproduct firms |
title_fullStr |
Signaling advertising by multiproduct firms |
title_full_unstemmed |
Signaling advertising by multiproduct firms |
title_sort |
Signaling advertising by multiproduct firms |
author |
Pires, Cesaltina |
author_facet |
Pires, Cesaltina Catalão-Lopes, Margarida |
author_role |
author |
author2 |
Catalão-Lopes, Margarida |
author2_role |
author |
dc.contributor.author.fl_str_mv |
Pires, Cesaltina Catalão-Lopes, Margarida |
dc.subject.por.fl_str_mv |
Quality signaling Advertising Multiproduct firms |
topic |
Quality signaling Advertising Multiproduct firms |
description |
We consider the use of advertising expenses as quality signals in multiproduct firms, extending previous results on single product firms. In our model, a firm introduces sequentially two products whose qualities are positively correlated.We investigate whether there exist information spillovers from the first to the second market. We show that, when correlation is high, the equilibrium in market 2 depends on the quality reputation the firm has gained in market 1. Moreover, if a firm with a high-quality product 1 wants to separate from its low-quality counterpart, it needs to advertise more in this market than if the qualities of the two products are unrelated. This advertising level signals not only high quality in the first market, but also the likely quality of the second product. Thus, advertising in the first market has information spillovers in the second market. |
publishDate |
2011 |
dc.date.none.fl_str_mv |
2011-01-01T00:00:00Z 2012-01-09T11:53:34Z 2012-01-09 |
dc.type.status.fl_str_mv |
info:eu-repo/semantics/publishedVersion |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/article |
format |
article |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
http://hdl.handle.net/10174/3126 http://hdl.handle.net/10174/3126 https://doi.org/10.1007/s00182-011-0279-5 |
url |
http://hdl.handle.net/10174/3126 https://doi.org/10.1007/s00182-011-0279-5 |
dc.language.iso.fl_str_mv |
eng |
language |
eng |
dc.relation.none.fl_str_mv |
Departamento de Gestão, Universidade de Évora cpires@uevora.pt mcatalao@ist.utl.pt 639 |
dc.rights.driver.fl_str_mv |
info:eu-repo/semantics/openAccess |
eu_rights_str_mv |
openAccess |
dc.publisher.none.fl_str_mv |
Springer |
publisher.none.fl_str_mv |
Springer |
dc.source.none.fl_str_mv |
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Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
instacron_str |
RCAAP |
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RCAAP |
reponame_str |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
collection |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
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Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
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