IDEAS home Printed from https://ideas.repec.org/a/cup/jwecon/v16y2021i2p169-188_4.html
   My bibliography  Save this article

Reputation and Advertising of Collective Brand Members in the Wine Industry: The Moderating Role of Market Share

Author

Listed:
  • Sellers-Rubio, Ricardo
  • Mas-Ruiz, Francisco
  • Sancho-Esper, Franco

Abstract

This paper analyzes the nonlinear relationship between the advertising investment and reputation of collective brand members in an experience goods industry, as well as the moderating role of their market share within the collective brand. The central assumption is that the quality reputation of collective brand members has a positive effect on their advertising investment until a reputation threshold is reached, after which the effect on advertising investment becomes negative. This change in the slope is explained by the information sets (firm reputation and collective reputation) used by consumers to reduce uncertainty, which leads to a weaker motivation for the firm to invest in advertising. In addition, scale economies of advertising mean that the market share of collective brand members negatively moderates the curvilinear relationship between quality reputation and advertising investment. The results for a sample of 176 companies in a Spanish experience goods industry (i.e., winemaking) between 2004 and 2014 show an inverted U-shaped relationship between the advertising investment and reputation of collective brand members. The results also show that market share negatively moderates this curvilinear relationship. (JEL Classifications: M31, M37, Q13)

Suggested Citation

  • Sellers-Rubio, Ricardo & Mas-Ruiz, Francisco & Sancho-Esper, Franco, 2021. "Reputation and Advertising of Collective Brand Members in the Wine Industry: The Moderating Role of Market Share," Journal of Wine Economics, Cambridge University Press, vol. 16(2), pages 169-188, May.
    • Handle: RePEc:cup:jwecon:v:16:y:2021:i:2:p:169-188_4
    as

    Download full text from publisher

    File URL: https://www.cambridge.org/core/product/identifier/S1931436120000528/type/journal_article
    File Function: link to article abstract page
    Download Restriction: no
    ---><---

    More about this item

    JEL classification:

    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing
    • M37 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Advertising
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cup:jwecon:v:16:y:2021:i:2:p:169-188_4. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Kirk Stebbing (email available below). General contact details of provider: https://www.cambridge.org/jwe .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.