Measuring Image Spillovers in Umbrella-Branded Products

Abstract

Umbrella branding, the practice of labeling more than one product with a single brand name, is commonly used by multiproduct companies. Spillovers occur when information about one product affects the demand for other products with the same brand name. This article provides a methodology to analyze spillovers and uses it to measure two instances of spillover effects. The study shows that negative spillovers resulted from the Audi 5000's problems with sudden acceleration and that positive spillovers resulted from Jaguar's first major model change in seventeen years. Copyright 1990 by the University of Chicago.