Correspondence: Seigyoung Auh, Yonsei School of Business Yonsei University 134 Shinchon-dong, Seodaemun-gu Seoul, 120-749, Korea. Tel: +82 (2) 2123-5486; E-mail: sauh@yonsei.ac.kr

¹obtained his PhD from the University of Michigan. His research interests include application of resource-based theory to marketing strategy and capability. His research has appeared in the Journal of the Academy of Marketing Science, Journal of Retailing, International Journal of Research in Marketing and Journal of Business Research, among others.

²obtained his PhD from the University of California, Irvine. His research interests include diffusion of technological innovation at the family household level and information technology policies at the national level. His research has appeared in the Journal of Marketing, Management Science and Journal of Retailing, among others.

Received 15 May 2007; Revised 15 May 2007; Published online 13 July 2007.

Abstract

Employing consumer inference making and the information congruency framework, the authors examined the effect of brand name in the context of multigenerational product introduction in two studies. Results showed that brand name type had an effect on perceived technological improvement, product differentiation and the degree to which one is willing to pay more for the current version compared to the previous version of technology. Furthermore, results showed that the degree of congruency between brand name (sequential vs nonsequential) and type of innovation (breakthrough vs normal) can elevate such effects. The results underscore the importance of proper branding strategies for high-tech products, especially when it is a breakthrough development.