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Abstract The study will discuss consumers’ perceived quality to product after brand alliance by observing the relationship of brand alliance between TV shopping channels and manufacturers in accordance with Transaction Costs Theory. The higher the alliance relationship is, the more specific assets are necessary for TV shopping channels and manufacturers to spend. Specific assets, if cooperation fails, cannot be turned for other use, thus becoming the hostage of transactions, unable to serve as effective quality assurance signals. From past studies of brand alliances, a brand signifies the quality because of its invested capital and the degree of risk in the past; namely, giving hostage the past investments and future profits for transactions. Prestigious brands are less likely to invoke fines and punishment from consumers because of poor quality. Therefore, the study is conducted based upon the presumption that the prestige of manufacturer brands and TV shopping channel brands would be an intervening factor. In other words, brand prestige would have an impact upon the effect caused by the degree of brand alliances. In terms of product attributes, past studies found that consumers valuing product qualities based on different criteria when encountering different product attributes. For experience goods, consumers would rely more on external information to judge the quality of a product. Under such circumstances, the degree of brand alliance becomes a critical clue of signals. For this reason, the study adopts product attributes as an intervening variable in the interactions of brand alliance. The study employs experiment method to examine the influence of brand alliance upon consumers’ perceived quality to products after brand alliance. In the study, the dependant variable is perceived quality; independent variable is the degree of brand alliance; and the intervening variable are the prestige of a manufacturer brand, the prestige of a TV shopping channel brand, as well as the product attribute of a TV shopping channel brand. From the experiment has shown that, in terms of major effects, the degree of brand alliance does have impact upon the perceived quality after brand alliance. The higher degree of cooperation, the more investments both sides instill. Once consumers find that an allied brand has investment of specific assets from both sides, and the failure of cooperation would mean a loss to both sides, they would believe the product quality announcement of the allied brands. In terms of intervening effects, however, the study fond that the degree of brand alliance would not be influenced by the prestige of manufacturer brand, the prestige of TV shopping channel, and the product attribute of TV shopping channel. (1) In all, testees hold better perceived quality to product after brand alliance to prestigious manufacturer brands. On the other hand, manufacturer brands would not strengthen nor weaken the influence of the degree of brand alliance upon consumers’ perceived quality to product. (2) TV shopping channel brand has no influence upon perceived quality towards manufacturer brand. Namely, consumers' perceived quality to manufacturer brand product will not be affected by the brand of TV channel. (3) In terms of product attribute, past theories found that on the consumption of experience goods, due to the lack of criteria in evaluating product quality, consumers rely more on the signals provided by brand alliance. However, the experiment found that the perceived quality to product after the brand alliance between TV shopping channel and manufacturer would not be different because of product attributes. Search prduct or experience product, as long as the brand alliance is enhanced, and consumers find the investment of specific assets from both sides, they would harbor better perceived quality toward product after brand alliance.
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