Measuring image spillovers in umbrella-branded products
Article Abstract:
Research was conducted to determine how information about one product influenced the image of other products with the same brand name (known as umbrella-branded products). A mathematical model was constructed to analyze spillover effects, and the model was applied to the spillover effects of the Audi 5000 and 1988 model Jaguars. The demand for the Audi 4000 and Quattro decreased as a result of the Audi 5000's acceleration defect, but the demand for older model Jaguars increased as a result of the advertising campaign for the new model in 1988. The analysis demonstrated that companies should not extend their products into uncontrollable risky markets, and that they should consider how the extension of one product will affect their other products.
Publication Name: The Journal of Business
Subject: Business, general
ISSN: 0021-9398
Year: 1990
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Market segmentation by price-quality schedules: some evidence from automobiles
Article Abstract:
Sellers can distinguish among heteregenous buyers of a product by employing multiple quality-variants of the product. Mussa and Rosen (1978) have developed a price/quality discrimination model that can help sellers identify the different classes of customers by encouraging customer self-selection and surplus extraction by the seller. This model of market segmentation by price-quality schedules, now considered the standard model, as extended by Katz (1984) is applied to the US automobile industry. Although this market does not support some of the model's assumptions, evidence is found indicating the applicability of the Mussa and Rossa model and its utility in measuring the results of a seller's price and quality policies.
Publication Name: The Journal of Business
Subject: Business, general
ISSN: 0021-9398
Year: 1992
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The adjustment of employment to technical changes in the steel and auto industries
Article Abstract:
Technological change has two opposing effects on employment in an industry: one tendency is for technologically advanced machines to displace employees, and the opposing tendency is for technology to lower costs, thereby increasing demand for the product and for labor. The relationship between new technology and employment in the auto and steel industries between 1959 and 1980 is examined. The effects of technological change on employment was found to be small in both industries, and an increase in demand in the automobile industry compensated for any employment loss due to technology.
Publication Name: The Journal of Business
Subject: Business, general
ISSN: 0021-9398
Year: 1986
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