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Allied Academies International Conference.Academy ofMarketingStudies.Proceedings,7(1),19-24.Retrievedfrom
Prices of new durable goods are largely determined by manufacturers who control the supplyand influence the demand for their products. A brand has value to a manufacturer by increasingthe demand for the products within the brand. Prices for used goods, however, are primarilydetermined by the market. In this paper the influence of brand on the price of used goods isexamined. Specifically, a 'brand halo' effect is proposed, in which perceptions of a brand'soverall attributes affect pricing beyond the effect of the specific qualities of a particular productwithin the brand. This 'brand halo' effect is then explored in the used car market. It is found thatused car prices are affected by both the reliability of a particular car model and the reliabilityassociated with a brand overall. A brand plays various roles to the consumers, including being asignal of quality and attribute levels, and establishing trust (Keller, 1998). The brand thus canhelp stimulate the demand for the branded product. Trying to capitalize on the establishedbrands and avoid the expense of launching new ones, manufacturers often introduce brandextensions, that is different products under the same brand name. Consumers' evaluation of thedifferent brand attitudes could be conditioned by their overall impression regarding the brand(Del Rio, Vazquez & Iglesias, 2001). Such influence of the overall impression of the brand nameis part to what is known as consumer-based brand equity (Keller, 1998). The halo effect can becombined with the notion of consumer-based brand equity to form a 'brand halo' effect. In thecase of a 'brand halo', an individual would evaluate a good based on the level of some attributegenerally associated with the brand. This evaluation would supplement or replace the evaluationbased on the actual level of the attribute present in the specific model being evaluated.Randle D, Robert P, and William C. (2014). Beyond “halo”: the identification and implications ofdifferential brand effects across global markets", Journal of Consumer Marketing, Vol. 31 Iss: 2,pp.133144.RetrievedfromIt is widely accepted among marketing managers and researchers that brands act as a“shorthand device or means of simplification for their [consumers'] product decisions. One wayin which brands may play such a role is through a “halo” effect, where the brand name has aconsistent impact on a variety of consumer evaluations, even those not directly associated withthe brand's positioning or promise of benefits. “Halo” is a theoretically and empirically robustfactor that impacts many different types of consumer evaluations. Indeed, recent researchdemonstrates the impact of halo effects on factors such as global product quality and corporatesocial responsibility, brand-image associations, brand extensions, and country of origin effects.

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Term
Spring
Professor
RErickson
Tags
Business, Management, Brand, Halo

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