Please use this identifier to cite or link to this item: http://hdl.handle.net/1783.1/28106

The joint effects of brands and warranties in signaling new product quality

Authors Price, LJ
Dawar, N.
Issue Date 2002
Source Journal of economic psychology , v. 23, (2), 2002, APR, p. 165-190
Summary The results of prior empirical research on the influence of warranties on consumer perceptions of product quality are mixed in terms of the effect's intensity as well as its focus along two different dimensions of quality. While earlier researchers have recognized this inconsistency, no unified explanation has been proposed to account for the mixed results. We propose that brand information interacts with warranty information to determine quality perception outcomes. We argue that joint signaling effects of brands and warranties depend on the information content inherent in each signal as well as the relative credibility of each in conveying that information. Furthermore, we suggest that warranties can enhance brand signal credibility with the result that brand signaling effects are modified, The results of prior warranty studies as well as two experiments reported here are shown to conform to predictions derived from this proposed framework. (C) 2002 Elsevier Science B.V. All rights reserved.
Subjects
ISSN 0167-4870
Language English
Format Article
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