Overcoming a No-Reputation Liability through Documentation and Advertising Regulation

Abstract

The author investigates the effectiveness of selected credibility enhancement devices in increasing the intent to purchase a brand which has a unique attribute, but is advertised by a firm with no reputation in the specific product category. The credibility enhancers tested are documentation of advertising claims, advertising self-regulation, and government regulation. Findings of the study demonstrate that implementation of these credibility enhancers can be valuable in bolstering a firm's influence and overcoming a no-reputation liability.