Cognitive outcomes of brand heritage: A signaling perspective

Fabien Pecot (1) , Altaf Merchant (2) , Pierre Valette-Florence (3) , Virginie de Barnier (4)

1 University of York [York, UK]
2 University of Washington (Tacoma)
3 UGA IAE - Université Grenoble Alpes - Institut d'Administration des Entreprises
4 AMU - Aix Marseille Université

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.

Keywords: brand heritage; signaling theory; price premium; time orientation; nostalgia

Domains: Business administration

Fabien Pecot, Altaf Merchant, Pierre Valette-Florence, Virginie de Barnier. Cognitive outcomes of brand heritage: A signaling perspective. Journal of Business Research, 2018, 85, pp.304 - 316. ⟨10.1016/j.jbusres.2018.01.016⟩. ⟨hal-01831914⟩