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Brand value in horizontal alliances : the case of twin-cars

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dc.affiliation.dptoUC3M. Departamento de Economía de la Empresaes
dc.contributor.authorEsteban Bravo, Mercedes
dc.contributor.authorLado, Nora
dc.date.accessioned2011-10-10T17:22:10Z
dc.date.available2011-10-10T17:22:10Z
dc.date.issued2011-08
dc.description.abstractRival firms often cooperate horizontally in order to share risks and achieve scale advantages in production or in their research and development projects. The output of these strategic alliances is usually sold by the individual ally company under its own brand and using its own marketing mix strategies. Marketing strategies create a cumulative effect that is reflected in brand value. Although horizontal alliances often have a significant overall impact on firm profitability, undesired brand value dilution is a worrisome possibility for the partners and therefore a relevant subject of study. In this paper, we consider brand value to be the economic added value of a brand, and propose two marketbased measures of brand value: (1) price premia (which are relevant for a unit sale) and (2) revenue premia (which also account for the premia in sales volume). We apply this analysis to the Spanish market for new automobiles, in which successful and long-lasting horizontal alliances have formed. Our findings suggest that, during the introduction stage of the product life cycle, horizontal allies did not charge different price premia, but that horizontal allies profit from differences in brand reputation obtained from demand side effects such as revenue premia (specifically, the impact on sales volume). Consequently, horizontal cooperation among brands does not dilute their value at the introduction stage. Furthermore, our results suggest that horizontal allies do charge different price premia during the growth stage of the product life cycle. Consequently, horizontal allies have recognized strategies that do not dilute brand value in intense competition mitigating the brand value diluting risk
dc.description.statusPublicado
dc.format.mimetypeapplication/pdf
dc.identifier.bibliographicCitationThe Journal of the Operational Research Society, (Aug 2011), v. 62, n. 8, pp. 1533-1542
dc.identifier.doi10.1057/jors.2010.112
dc.identifier.issn0160-5682
dc.identifier.publicationfirstpage1533
dc.identifier.publicationissue8
dc.identifier.publicationlastpage1542
dc.identifier.publicationtitleThe Journal of the Operational Research Society
dc.identifier.publicationvolume62
dc.identifier.urihttps://hdl.handle.net/10016/12259
dc.language.isoeng
dc.publisherPalgrave Macmillan
dc.relation.publisherversionhttp://dx.doi.org/10.1057/jors.2010.112
dc.rights©Operational Research Society
dc.rights.accessRightsopen access
dc.subject.ecienciaEmpresa
dc.subject.otherBrand value
dc.subject.otherRevenue premia
dc.subject.otherAutomobile market
dc.subject.otherPrice premia
dc.subject.otherMarketing
dc.titleBrand value in horizontal alliances : the case of twin-cars
dc.typeresearch article*
dc.type.hasVersionAM*
dspace.entity.typePublication
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