吴肖乐: Brand Spillover as a Marketing Strategy
Time：Tuesday, May 11, 15：00-16:00 p.m. Beijing Time
Location：1111, building 1, School of Management
Speaker：Xiaole Wu, Fudan University
Abstract：
Brand Spillover as a Marketing Strategy
When a weak-brand firm and a strong-brand firm source from a common contract manufacturer,the weak-brand firm may advertise this relationship to promote its own product. This paper investigates whether the weak-brand firm should use such brand spillover as a marketing strategy and how this decision depends on the firms’ characteristics and market conditions. We develop a game theoretic model consisting of one contract manufacturer and two firms with asymmetric brand power. The contract manufacturer determines the whole sale prices for the two firms and then each firm decides whether to source from the contract manufacturer. If both firms outsource to the contract manufacturer, then the weak-brand firm may choose whether to promote its product through brand spillover. Although brand spillover improves the attractiveness of the weak-brand firm’s product at no cost, we find that the weak-brand firm should not use brand spillover if (1) its original brand power is sufficiently low or (2)the contract manufacturer dose not have a significant cost advantage. Interestingly, the adoption of brand spillover by the weak-brand firm can benefit all three parties under certain circumstance, including the strong-brand firm. Nevertheless, when the contract manufacturer has a significant cost advantage, in equilibrium the strong-brand firm will be hurt by brand spillover and hence should take actions to prevent it.
Introduction：
Dr. WU Xiaole is Professor and doctoral supervisor with the Department of Management Science at the School of Management of Fudan University. She received her bachelor’s degree in Industrial Engineering from Tsinghua University in 2006, and Ph.D. degree in Management from Washington University in St. Louis, USA in 2011. Her research fields include Supply Chain Management, Risk Management, and Sustainable Operations. Her research work has been published by journals such as Management Science, MSOM, POM, etc. Prof. Wu also serves as Senior Editor for POM and Associate Editor for Service Science and Modern Supply Chain Research and Applications.
