Antecedents of brand credibility under asymmetrical information

This study focuses on the antecedents of brand credibility and validates part of the model presented by Erdem and Swait (1998). Following the signalling literature, we argue that under asymmetrical information, the importance of brand credibility stems from the capability of brands to inform consumers who are uncertain about product attributes. Indeed, firms may use brands to notify consumers about product positions and to assure that their product claims are credible. Using information economics as theoretical background, the proposed perspective determines how credibility is shaped. Data was collected across a number of consumers in Australia via a self-report survey and a structural equation model (SEM) was estimated. The results provide empirical evidence and support the work of Erdem and Swait (1998).