Building brands through brand alliances: combining warranty information with a brand ally
| Published date | 12 April 2013 |
| Date | 12 April 2013 |
| DOI | https://doi.org/10.1108/10610421311321022 |
| Pages | 153-160 |
| Author | Xiang Fang,Bashar S. Gammoh,Kevin E. Voss |
| Subject Matter | Marketing |
Building brands through brand alliances:
combining warranty information with a
brand ally
Xiang Fang
Department of Marketing, Oklahoma State University, Tulsa, Oklahoma, USA
Bashar S. Gammoh
Department of Marketing and International Business, University of Toledo, Toledo, Ohio, USA, and
Kevin E. Voss
Department of Marketing, Oklahoma State University, Stillwater, Oklahoma, USA
Abstract
Purpose – While previous research has shown a positive influence of a brand ally or a warranty, published research has not explored the effects of
using multiple types of quality signals. The purpose of this paper is to explore the joint effect of a default-independent signal (i.e. a brand ally) combined
with a default-contingent signal (i.e. a warranty) on the focal brand’s evaluations.
Design/methodology/approach – This paper reports the findings of a 2 (ally: none vs one) £2 (warranty: no vs yes) between-subjects factorial
design in which 174 subjects were randomly assigned to experimental conditions.
Findings – The study’s findings indicate that, individually, both brand alliance and warranty were a significant signal of product quality. However,the
use of multiple types of signals, as opposed to one signal, did not add incrementally to consumer’s perceived quality evaluations of a focal brand. In
addition, risk reduction mediated the effects of brand ally and/or warranty on the focal brand’s evaluations.
Originality/value – Recently, researchers have started to explore the influence of multiple brand alliance signals on consumer evaluations of brand.
However, only the same type of signal has been examined. Signaling theory suggests that other marketing mix elements are marketplace signals of
quality. This study contributes to the literature by investigating the role of multiple types of quality signals in brand building.
Keywords Signalling theory, Brand alliances, Product warranty, Multiple signalling, Brand management, Strategic alliances
Paper type Research paper
An executive summary for managers and executive
readers can be found at the end of this article.
Introduction
Published research demonstrates that signaling consumers
using a brand ally leads to higher perceived quality evaluations
of a previously unknown focal brand (e.g. Voss and Tansuhaj,
1999). Recently, researchers have started to explore the
influence of multiple brand alliance signals on consumer
evaluations of brands (e.g. Voss and Gammoh, 2004;
Gammoh et al., 2010). Disturbingly, published findings to
date show that more than one brand ally did not produce
significantly higher perceived quality evaluations of a focal
brand relative to just one ally (Voss and Gammoh, 2004).
However, only the same type of signal has been examined –
brand allies. Signaling theory suggests that other marketing
mix elements are marketplace signals of quality (Akerlof,
1970; Kirmani and Rao, 2000). Packaging, advertising, and
warranties not only provide direct product information but
also convey indirect information on product attributes about
which consumers know little.
This study contributes to the literature by investigating the
role of multiple types of quality signals in brand building.
Building on the extant literature we use a brand alliance as one
type of quality signal. Warranty information was included as
second type of signal for two reasons. First, from a theoretical
perspective, Kirmani and Rao (2000) distinguished two broad
types of marketing signals: default-independent signals and
default-contingent signals[1]. Default-independent signals,
such as advertising and brand names, are those in which the
investments made in building the brand are exposed to loss if
the brand defaults on its promise. Default-contingent signals,
such as warranty, do not “involve monetary expenditures up
front yet credibly conveys information that false claims would
involve a direct cost to the firm” (Kirmani and Rao, 2000,
p. 68). This suggests that a warranty signal can serve as a bond
for quality (see Rao and Ruekert, 1994). Thus, a warranty,
which commits the firm to expend future resources, is an
interesting complement to brand alliances, which depend on
past expenditures of resources. The finding that two or more
The current issue and full text archive of this journal is available at
www.emeraldinsight.com/1061-0421.htm
Journal of Product & Brand Management
22/2 (2013) 153–160
qEmerald Group Publishing Limited [ISSN 1061-0421]
[DOI 10.1108/10610421311321022]
The authors contributed equally to this project and are listed in
alphabetical order.
153
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