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Implications from Cue Utilization Theory and Signalling Theory for Firm Reputation and the Marketing of New Products

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  • Roland Helm

    (University of Jena, Faculty of Economics)

Abstract

The main research streams, which focus on signals, signalling theory and cue utilization theory stress the importance of a producers´ credibility or reputation as an important factor that determines a signals´ potential to reduce customers´ risks and to motivate customers to adopt a product. Prior empirical research focused on the isolated effect of cues like price, guarantees, advertising, or reputation on perceptions of quality of new products rather than on the impact of reputation on perceptions of other cues like advertising and bonding instruments, e.g. guarantees. This research focuses on the impact of reputation on the effectiveness of various types of information and bonding instruments which are said to depend on the character of the instrument. The major goal of this paper is to identify adequate strategies for an innovative producer with low reputation to credibly signal high quality.

Suggested Citation

  • Roland Helm, 2006. "Implications from Cue Utilization Theory and Signalling Theory for Firm Reputation and the Marketing of New Products," Jenaer Schriften zur Wirtschaftswissenschaft (Expired!) 03/2006, Friedrich Schiller University of Jena, School of of Economics and Business Administration.
    • Handle: RePEc:jen:jenasw:2006-03
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    Cited by:

    1. Tomasz L. Nawrocki & Danuta Szwajca, 2022. "The Importance of Selected Aspects of a Company’s Reputation for Individual Stock Market Investors—Evidence from Polish Capital Market," Sustainability, MDPI, vol. 14(15), pages 1-15, July.
    2. Ullah, Subhan & Attah-Boakye, Rexford & Adams, Kweku & Zaefarian, Ghasem, 2022. "Assessing the influence of celebrity and government endorsements on bitcoin’s price volatility," Journal of Business Research, Elsevier, vol. 145(C), pages 228-239.
    3. Prof. (Dr.) Amol S. Dhaigude & Narain Gupta & Deepak Sardana & Vikas Kumar & Milé Terziovski, 2024. "The catalytic role of “responsible investments” in innovation and firm performance link: in the context of manufacturing in Asia-Pacific," Asia Pacific Journal of Management, Springer, vol. 41(3), pages 1315-1343, September.
    4. Park, Sangwon & Nicolau, Juan L., 2015. "Asymmetric effects of online consumer reviews," Annals of Tourism Research, Elsevier, vol. 50(C), pages 67-83.
    5. Liu, Zhiwei & Park, Sangwon, 2015. "What makes a useful online review? Implication for travel product websites," Tourism Management, Elsevier, vol. 47(C), pages 140-151.

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