Biomedical Engineering Reference
In-Depth Information
Table 23.1 Various contexts in which spillovers and related externalities have been studied in the literature
Within one product category
Across different product categories
Products available concurrently
Products available sequentially
Products available concurrently
Products available sequentially
In the context of one
irm or one brand
(e.g., in an
umbrella branding
setting)
Information spillover : Firm/
brand advertises about one
attribute; consumers make
inferences about the
unadvertised attribute(s)
(Ahluwalia et al. 2001 )
Forward spillover : Firm
introduces a new product
under the brand name of an
established product and
decides on the quality of the
product (Wernerfelt 1988 )
Forward and reciprocal spillover :
Firm extends the brand name
to a new category; the
promotion affects the product
in the old category (Erdem
1998 ; Erdem and Sun 2002 )
Forward and reciprocal
spillover : Firm promotes
the Rx version and
subsequently introduces the
OTC version; the OTC
version is affected by the
promotion of the Rx (Ling
et al. 2002 )
Multi - agent externality : One
agent's efforts on behalf of
the brand affects the other
agent's payoff (Lal 1990 )
Reciprocal spillover : Firm
introduces and advertises a
product extension;
advertising also affects the
parent brand (Balachander
and Ghose 2003 )
Firm introduces a new
product under umbrella
branding; information about
the new product affects the
umbrella brands (Sullivan
1990 )
In the context of
multiple irms or
competing brands
(e.g., in a brand
portfolio or
multi-market
contact setting)
Spillover in product or brand
portfolios : The brand equity
of one product may affect
the others in a irm's
product portfolio (Lei et al.
2008 )
Prior perception spillover and
dynamic- perception
spillover : An entrant
introduces a new brand
(drug) in the category
served by an incumbent; the
new brand beneits from the
incumbent's reputation
(Janakiraman et al. 2009 )
Spillover in marketing alliances :
One brand forms an alliance
with another established
brand; performance of the
alliance affects consumers'
attitude toward the partnering
brands (Simonin and Ruth
1998 ; Suh and Park 2009 )
Counter - extension spillover :
A irm with an established
brand in category X
launches an extension into
category Y; an incumbent
serving category Y then
launches a counter-
extension into category X.
This raises competitiveness
in the original category and
affects the established
brand in category X
(Kumar 2005 )
(continued)
 
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