Author
Verhoef, P. C., Pauwels, Koen Hendrik, Tuk, M. A.
Publication Date
2012-07
Publication Place
-
Wiley
Subject
Component sharing, Branding, Interface marketing and production, Brand portfolio, Ingredient branding, Brand equity
Type
Periodical
Language
English
Digital
Yes
Manuscript
No
Library
Özyeğin University
Library Asset ID
1540-5885
Record ID
0f354419-515b-49c6-8da7-7007cd9ea66b
Library Location
Business Administration
Date
2012-07
Notes
Zyman Institute for Brand Science (ZIBS) Emory University ; Customer Insights Center of the University of Groningen
Sample Text
Component sharing may look great in the boardroom, but not in the showroom. Indeed, savings on R&D and production costs could be offset by a plunge in customer brand attractiveness. Combining experimental with econometric studies, this paper investigates the impact of component sharing on customer evaluation of luxury, volume and economy brands offered in a car manufacturer’s vertical product line. An experimental study shows that the evaluation of luxury brands sharing with a volume brand suffers more than when a volume brand shares components with an economy brand. The evaluation of an economy brand benefits more from sharing with a volume brand than a volume brand suffers from sharing with an economy brand. The magnitude of these effects depends on several factors, such as component type, the source of the component sharing and the salience of component sharing to the consumers. The explorative examination of market share effects confirms that luxury brands may suffer, while economy brands may benefit from component sharing. The first to look at the consumer impact of component sharing, this paper sets up a rich agenda for future research.
DOI
10.1111/j.1540-5885.2012.00925.x
Cilt
29
