Assessing Customer Evaluation and Revenue Consequences of Component Sharing Across Brands in the Vertical Product Line

Topics:
Brand Strategy
Tags:
Brand,
Branding,
Marketing,
Revenue
Source:
Erasmus Institue of Management

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Overview: 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 and its subsequent revenue consequences. An experimental study shows that the harm for the higher-end brand is largest, when a luxury brand shares components with a volume brand, the source of the components is the higher end brand, and when the customer has a high initial evaluation of the higher-end brand.

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Format: PDF | Size: 343KB | Date: Feb 2005 | Pages: 36

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