Working Papers

Brand Alliances as Information About Unobservable Product Quality

Akshay R. Rao, Lu Qu, and Robert W. Ruekert

Jan 1, 1997

Examines the conditions under which brand alliances “signal” unobservable product quality to quality-sensitive buyers; suggests that the credibility of the primary brand ally is driven in part by its vulnerability to punishment should the claim of high quality turn out to be false.

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