Spillover Effects of Certified Products on Non-Certified Products of the Same Brand - An Empirical Analysis of Effect Size and Direction

• Applicant: Professor Dr. Hartmut Holzmüller
• Subject Area: Accounting and Finance
• Term: from 2015 to 2018
• Project identifier: Deutsche Forschungsgemeinschaft (DFG) - Project number 276097471

Far more than 1,000 different quality seals adorn products, services, and diverse online offerings in Germany. For instance, considering solely the food industry, about 300 different certificates affirm the quality of diverse products (Wagner 2000, Ökotest Kompakt 2010). Previous research has shown that such quality signals are particularly suitable for reducing consumers' uncertainty regarding the quality of certified products (Gierl and Stich 1999, Hogreve and Wittko 2006, Krischik 1998, Schweiger et al. 1998, Jahn et al. 2005). However, insights into the effects of quality seals on non-certified products are rare. Therefore, the proposed project is centered toward an analysis of the effects of quality seals from a more global perspective (i.e., assortment and brand level). In order to examine the total effects of partial certifications of assortments, the established positive effects of quality seals on certified products will be contrasted with potential non-intended spillover effects on non-certified products of the same brand. The results provide recommendations regarding companies' certification efforts by indicating whether they should certify complete product lines or can - for the sake of cost efficiency - limit their certification activities to partial assortments. Hence, the proposed research idea is based on the assumption that the introduction of a certified product changes perceptions of non-certified products of the same brand as well. To profoundly investigate the total effects of quality seals, the identification of influential situational, product related, and personal factors becomes central consideration of the proposed research activities. In a first step, the expected changes in perceptions of certified and non-certified products of the same brand resulting from partial certification of assortments will be investigated by means of an experimental study. Subsequently, moderators which are in a position to influence the intensity of the non-intended effects of partial assortment certification will be identified using a qualitative research design. The relevance of each of the identified moderators will be tested my means of a series of lab and field experiments. Finally, the empirical results allow a purposeful deduction of recommendations for a more efficient usage of partial assortment certifications in business practices.

• DFG Programme: Research Grants
• Co-Investigator: Dr. Sören Köcher