Co-Branding Bidding StrategieS
Bernd Helmig/Jan-alexander Huber/Peter S. H. Leeflang*
Co -branding: The STaTe of The arT
the use of co-branded products as a form of brand management has gained increasing attention from managers and scientists, as evidenced by the practitioner-oriented articles and empirical studies published since the mid-1990s. However, there is nodescription that contrasts co-branding with other branding strategies, nor is there a structured overview of the main findings of co-branding studies. We classify different branding strategies, discuss branding literature, and develop a theoretical model for co-branding based on research findings. in addition to managerial implications, we provide a critical assessment of research, identify researchquestions, and offer a research agenda for cobranding. JeL-Classification: M10, M31, M37. Keywords: Co-branding; Spill-over effects; Success Factors of Co-brands.
1 i nTroduCTion Because of the fierce competition among manufacturers and retailers in saturated markets, especially for fast-moving consumer goods, the use of co-branded products, has become increasingly important for brand managers inrecent years (e.g., Vaidyanathan and Aggarwal (2000); Desai and Keller (2002); Washburn et al. (2004)). Although co-branded products mainly appear among consumer goods (for example, Betty Crocker cake mix with Hershey’s chocolate sauce; Kellogg’s Pop Tarts with Smucker’s fruit filling), they are also relevant for durables (IBM personal computers with Intel processors) and services (AT&T andMasterCard financial
* Bernd Helmig, University of Mannheim, Chair and Department of Business Administration, Public & Nonprofit Management, 68131 Mannheim, Germany, e-mail: email@example.com. Jan-Alexander Huber, HSH Nordbank AG, Gerhart-Hauptmann-Platz 50, 20095 Hamburg, Germany, e-mail: firstname.lastname@example.org. Peter Leeflang, University of Groningen, Departmentof Marketing, P.O. Box 800, 9700 AV Groningen, The Netherlands, e-mail: email@example.com. The authors’ names are listed in alphabetical order; however, each one has contributed equally to this article.
sbr 60 october 2008 359-377
B. HeLMig/J.-a. HuBer/P. S. H. LeeFLang
services cards). Along with classical brand extensions and other brand alliance strategies, such asadvertising alliances and dual branding, co-branded products offer a means of differentiating products in competitive environments. Through physical product integration, by which one product is branded, i.e., identified, simultaneously with two other brands, companies can realize positive effects for both products. Thus, compared to other forms of brand alliances, physical product integration is anessential constituent and differentiation criterion for co-branded products. According to the signalling perspective (e.g., Wernerfelt (1988); Erdem and Swait (1998)), the combination of two brands provides greater assurance about product quality than does a single branded product, and should lead to higher product evaluations and premium prices (Rao et al. (1999)). Although co-branded productshave been in use for some time, there is surprisingly little quantitative empirical research on the subject (e.g., Park et al. (1996); Simonin and Ruth (1998); Rao et al. (1999); Desai and Keller (2002)). Therefore, in this paper we distinguish co-branding from brand extensions and other brand alliance strategies and provide a structured, comprehensive overview of the outcomes of empirical researchon co-branded products. The article is structured as follows: In Section 2, we define co-branding and compare it with other branding strategies. In Section 3 we discuss and evaluate the literature on co-branded products and summarize its main findings. In Section 4 we develop a theoretical model of co-branded products. In Section 5 we offer managerial implications, including a decision matrix to...
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