Simultaneous Deployment of Multiple Quality Signals
Start Date
12-4-2024 4:00 PM
Location
CASB 105
Document Type
Presentation
Abstract
While managers customarily deploy multiple quality signals simultaneously, neither the literature nor the practice has clearly outlined the true outcome of such strategy. Borrowing from three different perspectives, we can either argue that such strategy has no added effect since signals substitute each other (signaling theory perspective), or that it would result in a negative interaction effect (information overload perspective), or that it would have an additive effect (agency theory perspective). The current research evaluates these competing theories and the findings of its two studies support the agency theory perspective, especially when the simultaneous deployment of multiple signals signify the sellers’ ability and motivation to offer high quality.
Keywords
quality signal, signaling theory, information overload, agency theory
Simultaneous Deployment of Multiple Quality Signals
CASB 105
While managers customarily deploy multiple quality signals simultaneously, neither the literature nor the practice has clearly outlined the true outcome of such strategy. Borrowing from three different perspectives, we can either argue that such strategy has no added effect since signals substitute each other (signaling theory perspective), or that it would result in a negative interaction effect (information overload perspective), or that it would have an additive effect (agency theory perspective). The current research evaluates these competing theories and the findings of its two studies support the agency theory perspective, especially when the simultaneous deployment of multiple signals signify the sellers’ ability and motivation to offer high quality.