Cognitive Outcomes of Brand Heritage: A Signaling Perspective
This paper examines the cognitive outcomes of brand heritage in the theoretical framework of signaling theory. Three quantitative studies show the added value of making brand heritage available to consumers in different situations of familiarity. The results show that brand heritage enhances perceived brand quality and commands a price premium for established companies (Study 1) as well as companies penetrating a new market (Study 2). It also outlines the moderating effect of the familiarity that consumers have with the company, and consumers’ past time orientation. Theoretical and managerial implications are also discussed.