Resource title

Umbrella branding and external certification

Resource image

image for OpenScout resource :: Umbrella branding and external certification

Resource description

In a market environment with random detection of product quality, a firm can employ umbrella branding as a strategy to convince consumers of the high quality of its products. Alternatively, a firm can rely on external certification of the quality of one or both of its products. We characterize equilibria in which umbrella branding fully or partially substitutes for external certification. We also show that the potential to signal quality is improved if consumers condition their beliefs on the source of information, namely whether information comes from external certification or from random detection.

Resource author

Hendrik Hakenes, Martin Peitz

Resource publisher

Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/26947

Resource license

Adapt according to the presented license agreement and reference the original author.