An analysis of complementary competence co-branding potential in the beer industry.
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Abstract
Co-branding, where two or more brands are used to market one new product, has
been proposed as a potentially cost effective marketing strategy in highly competitive
mature industries. The objective of the study was to evaluate a potential role for cobranding
to increase users’ overall brand preference and to stimulate non-users’
brand preference whilst suppressing any existing negative perceptions.
In order to do so the research sought to probe how consumers develop and respond to
a diverse and complex range of brand associations that result from a co-branding
alliance. A unique aspect is that this study incorporates unknown real brands in cobranding
alliances and distinguishes between low equity and unknown brands.
A convenience sample of 711 business studies students were asked to participate in
the research with 331 questionnaires suitable for analysis recovered (a response rate
of 47%). They were presented with individual brands and with co-brands
incorporating a little known or unknown beer and restaurant/fast food brand with a
relatively well known or popular complementary brand to produce an overall
consumption solution.
The study addresses four important research issues: Firstly, it tests a conventional
consumer-based multi-dimensional brand equity scale and demonstrates the
limitations and conceptual inconsistencies of this approach. A formatively-indicated
measurement scale is developed to measure respondents’ “overall brand preference”.
Secondly the method with which co-brand concepts are presented to respondents and
how their overall brand preferences are measured is addressed. Two experimental
procedures are tested. Thirdly, the effect on overall preference for a co-brand is
measured when the original brands are evaluated variously as combinations of high,
medium or low overall preference. Finally, the research examines the effect on
respondents’ overall preference for a co-brand when a third cause-related modifying
variable is introduced.
The research supports the findings of similar studies but also records a number of
novel contributions. Principally, that when component brands in a co-branding
alliance range from unknown to high equity brands, the relationship between the
contribution that a component brand makes to a co-brand is non-monotonic. For
example, an unknown brand may improve the overall brand preference for a low
equity, known brand. This has important implications in understanding consumers’
behavioural response to co-branding. The practical implications include highlighting
the contribution that start-up enterprises and unknown brands can make to
established brands rather than simply the reverse.
Keywords: Complementary competence co-branding, brand preference, consumerbased
brand equity, little known/unknown brands, formative scales, cause-related
marketing.
Description
Ph. D. University of KwaZulu-Natal, Pietermaritzburg 2014.
Keywords
Branding (Marketing), Beer industry., Bundling (Marketing), Brand choice., Theses -- Marketing management.