Effect of Co-branding Strategy Elements on Consumer Attitude and Purchase Intention : A Study in Indonesia

According to brand alliance literature, the compatibility of both brand characteristics in co-branded products will raise consumer positive attitude and purchase intention. Previous researches have explored co-branding strategy between the same sector or complement product character from different sector. However, few researchs have conducted exploration of the co-branding strategy in a different sector with less complement character. This study seeks to construct the value of co-branding strategy influencing female consumer attitude as well as purchase intention where the less-known Indonesian cosmetics brand who invite well-known food brands to create blended characteristics of cosmetic products. Three co-branded products namely Mizzu Cosmetics x Khong Guan Biscuits, Dear Me Beauty x Yupi, Dear Me Beauty x Sasa, Dear Me Beauty x Nissin as the object of research. A total of 358 questionnaires were distributed to female cosmetic consumers aged between 19-41. The proposed research model has been tested using PLS-SEM. The finding highlight prior attitude toward host brand appear weak to influence attitude toward co-branded. However, brand fit could mediate prior attitude toward host brand in influencing atittude toward co-branded. Mediating roles of brand fit, attitude toward co-brand, and post-attitude toward host brand appear important in the element of consumer attitude and purchase intention. A well-known and suitable co-branding partner is needed to give exposure to the co-branded product and provide a spill-over effect for the host brands. This study contribute to add spill-over effect phenomenon in brand alliance literatures.

Failed synergy from brand alliance: what Volvo learned in China?

Purpose Brand alliance strategy is a popular strategy for multinational enterprises entering foreign markets, especially when domestic firms in the host market have a relatively weaker brand image. However, Volvo Construction Equipment's failure to acquire a domestic firm in China (Shandong Lingong Construction Machinery Company Limited [SDLG]) challenges existing management theory. Thus, the purpose of this study is to understand the reasons behind the failure of a leading international brand’s acquisition of a local brand in a fast-growing developing country. Design/methodology/approach This paper conducted a case study to illustrate how Volvo failed to benefit from the dual-brand strategy by analyzing its brand architecture strategy, the industry specificity of its heavy equipment, issues around its complex dealership and the implementation of optimal distinctiveness for the Volvo brand after acquiring SDLG. Findings Although Volvo’s dual-brand strategy with SDLG was theoretically valid, in practice, the strategy made the two brands very distinct in their business-to-business (B2B) consumers’ perception and dealers’ operation. Given a wrong estimation of Chinese demand in its premium market, Volvo, which targeted only the Chinese premium market, failed to benefit from its brand alliance with SDLG in the Chinese market. Originality/value The analysis of Volvo’s acquisition of SDLG enriches the current theory of international business and brand management. In particular, the results provide new insights into how leading international brands can avoid potential failure in a fast-growing market. Moreover, this paper highlights the difference of branding strategy in the B2B and business-to-consumer markets, which carries value to business executives.

International higher education brand alliance: the role of brand fit and world-mindedness

PurposeThis research investigates three major research questions. First, how does brand alliance type, defined by a partner's location and brand quality, affect consumers' emotional value perceptions of higher education brand alliances for dual-degree programs? Second, does perceived brand fit mediate the relationship between brand alliance type and emotional value perceptions? Third, do individual differences in world-mindedness moderate the influence of brand alliance type on emotional value perceptions?Design/methodology/approachIn total, two experiments are performed. Experiment one examines the effect of brand alliance type, at varying combinations of partner brand quality and partner location (domestic or foreign), on consumers' emotional value perceptions. Experiment two examines the moderating role of world-mindedness in the relationship between brand alliance type and consumers' emotional value perceptions.FindingsResults provide evidence that consumers' perception of brand fit mediates the relationship between brand alliance type and consumers' emotional value perceptions of the alliance. Results also indicate that world-mindedness moderates the relationship between brand alliance type and emotional value perceptions.Originality/valueThis research extends the previous literature on higher education dual-degree brand alliances and introduces world-mindedness as an important consumer-based characteristic to consider in this line of research. It answers calls for more research on higher education branding and calls for research into the potential mediating role and importance of brand fit. It provides several theoretical and managerial implications relevant to the higher education brand alliances, particularly in dual-degree programs.

Investigating the effects of consumer characteristics with respect to brand knowledge and product involvement on brand alliance evaluation

PurposeThe purpose of this paper is to take the neglected influencing factors in brand alliance research into account based on consumer characteristics theory and discuss the influencing factors' interactive effects on brand alliance.Design/methodology/approachBased on the theory of consumer characteristics and the S&R model of brand alliance, an experimental design was conducted to examine the relationship among the various variables and moderators, which can test the changes of the dependent variables by controlling and manipulating one or more single variables. The sample includes 400 college students.FindingsThe results demonstrate that brand knowledge positively moderates the relationship between brand equity and consumer brand alliance, but not significantly affect the relationship between alliance evaluation and joint fit; in contrast, product involvement individually plays a positive moderating role on the relationship between joint fit, brand equity and consumer brand alliance evaluation.Originality/valueTwo consumer characteristic, brand knowledge and product involvement moderate the relationship between brand equity, joint fit and consumer brand alliance evaluation. Several empirical studies on brand alliance have documented mostly positive effects of brand alliance on consumer brand evaluations. Two important consumer characteristics' effect on brand alliance evaluation, brand knowledge and product involvement, were testified to expand the scope of influential factors of brand alliance evaluation on the basis of consumers' characteristic theory.

Research on brand alliance strategy innovation based on the big data analysis of consumers’ attitude Take Louis Vuitton and supreme as an example

As a big consumer of luxury brands, China has entered a period of rapid transformation under the impact of millennials and fashion brands. With the development of economy and the popularization of education, more and more people begin to purchase rationally, and consumers’ understanding of consumption is also gradually diversified. Based on the big data analysis of consumers’ attitude towards brand alliance, this paper puts forward some suggestions for the development of luxury brand and fashion brand in the future.

Co-Branding as Assemblage: Assemblage Theory, and Brand Alliances in the Digital Era

The article outlines the contours of a new methodology in the study of co-branding, based on M. DeLanda’s theory of assemblages, developed in line with the cutting edge of modern philosophical thought: object-oriented ontology. It is demonstrated that the relevance of its development is linked to the changes in brand alliance practices occurring under the influence of globalisation and digitalisation processes. Transformations characteristic to merging brands, and related to both their rise in number and diversification were proven to be part of a more global tendency towards the complication of social reality, and cannot be explained within the ‘perceived conformity’ paradigm that dominates co-branding. The author’s approach is conceptualised using comparative and discursive analysis methods, the essence of which lies in deconstructing the established notions of brand alliances as internally consistent alliances with an intelligible logic. Real co-branding cases were provided to demonstrate a tendency towards forming alliances evaluated as ‘irrational’, ‘sudden’, and ‘unpredictable’. To bridge the gap between theory and practice, it has been suggested that co-branding should be seen as an assembly process and that alliances themselves should be seen as systems of an assemblage nature. It is stressed that the representation of brands through the lens of the assemblage theory allows us to demonstrate their heterogeneity, plasticity and openness to change and interactions, which contributes to the formation of brand alliances. The conclusion outlines the prospects of applying the author’s approach to the field of co-branding, highlighting that the proposed optics of the theory of assemblage contribute to achieving the necessary flexibility in forming brand alliances relevant to the complexity and diversity of the modern digital era.