Those firms, like Sara Gruen, are rewarded for the good they do but not punished for the negative side effects of their choices. Therefore, they — like Sara Gruen — are encouraged to overproduce. Policymakers have it in their power to remedy that situation via taxes. These are not ...
This strategy may increase sales but also risks diluting and cannibalizing one of the most valuable assets of a company 鈥 the parent brand. Extant research has found especially negative effects after downward extensions (to lower price and quality levels). Building on social comparison theory, ...