Research@Smith: Spring 2007

How corporate messages influence the product portfolio

When corporations allocate their advertising dollars, most if not all go to traditional product brand messages. However, companies are increasingly allocating a portion of their advertising budgets to corporate-brand messages. This allocation is often hotly contested because managers generally don’t understand either the added value of corporate messages, or the differing effects of corporate and product messages. Gabriel Biehal, associate professor of marketing, separated out the effects of corporate messages from product messages in a recent paper, “The Influence of Corporate Messages on the Product Portfolio,” co-authored with Daniel A. Sheinin, University of Rhode Island. This is the first study to show the impact of corporate messages on multiple products in a company’s portfolio.

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