Advertising Content When Brand Choice Is a Signal

Birger Wernerfelt

The Journal of Business, 1990, vol. 63, issue 1, 91-98

Abstract: This article gives a formal rationale for image advertising and branding of homogeneous products that are consumed in public. The idea is that consumers can use brand choice to coordinate behavior and send meaningful social signals. The article distinguishes between variety signals and quality signals, and analyzes the competitive implications. Copyright 1990 by the University of Chicago.

Date: 1990
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