Tag Archives: Cao

Does brand partnership create a happy marriage? The role of brand value on brand alliance outcomes of partners

Zixia Cao, Ruiliang Yan
Industrial Marketing Management,Vol. 67, Pages: 148-157.
In this paper, we investigate an under-researched issue by examining the financial performances of both partner firms in a brand alliance. We find that a participating firm’s brand value and other brand characteristics are associated with not only its own financial performance but also its partner’s financial gains from the collaboration. Our results show that the participating firm gains higher stock returns when its partner’s brand value is higher. However, brand value differential reduces the positive effect of brand value on the partner firm’s financial performance. In addition, the primary partner’s brand alliance experience helps increase the positive effect of primary partner’s brand value on the stock returns of the secondary partner. The secondary partner’s brand exploitation attenuates the positive effect of secondary partner’s brand value on the stock returns of the primary brand firm.

Product returns, asymmetric information, and firm performance

Ruiliang Yan, Zixia Cao
International Journal of Production Economics,Vol. 185, Pages: 211-222.

There has been a scarcity of research that studies the value of product return information to supply chain firms. In this research, we assume that the online retailer has the product return information but the manufacturer does not. Our results show that a two-part price contract can motivate the online retailer to share its private information only under certain condition, but the revenue sharing contract plus profit split mechanism always is a valuable strategy to be utilized to seek sharing the online retailer’s private information and …
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Is brand alliance always beneficial to firms?

Ruiliang Yan, Zixia Cao
Journal of Retailing and Consumer Services,Vol. 34, Pages: 193-200.

In this research, we develop a fresh analytical model to examine the impact of brand quality on the firms’ performances when two firms selling substitute products form a brand alliance. Our results indicate that when two products have equal brand qualities, brand alliance is always a beneficial strategy for two firms to employ. However, when two products have different brand qualities, brand quality differential shows a positive relationship with the profit of the firm with the low-quality brand but demonstrates a …
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Health Creates Wealth? The Use of Nutrition Claims and Firm Financial Performance

Zixia Cao, Ruiliang Yan
Journal of Public Policy & Marketing,Vol. 35, Issue 1, Pages: 58-75.

Prior research has investigated consumers’ perceptions of nutritional information but does not detail how the use of nutrition claims on product packages may be associated with a manufacturer’s financial performance. Using data from 38 firms, the authors find evidence that a firm’s stock market performance and sales relate significantly and positively to both the degree of nutritional emphasis and the specificity of nutrition claims on product packages but relate negatively to the diversity of nutrition claims the company uses across …
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Manufacturer’s cooperative advertising, demand uncertainty, and information sharing

Ruiliang Yan, Zixia Cao, Zhi Pei
Journal of Business Research,Vol. 69, Issue 2, Pages: 709-717.

We assume a manufacturer-retailer supply chain where the manufacturer opens an online channel and provides a monetary support to the retailer to implement a local advertising campaign. Both the manufacturer and the retailer have their own information about the state of market demand. We thus examine the value of manufacturer’s cooperative advertising and its strategic influence on information sharing of the manufacturer and the retailer. Our results show that the manufacturer’s cooperative advertising coordinates the …
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Wedded bliss or tainted love? Stock market reactions to the introduction of cobranded products

Zixia Cao, Alina Sorescu
Marketing Science,Vol. 32, Issue 6, Pages: 939-959.

We examine whether cobrandingthe practice of using two established brand names on the same productincreases the market value of parent firms. Using data from the consumer packaged goods industry, we document that the average stock market reaction to the announcement of cobranded new products is approximately+ 1.0%. We hypothesize that this reaction is significantly higher than it would have been if these same products were single branded, and we find evidence consistent with this hypothesis. We also examine …
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