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Market-based drivers of cobranding success

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  • Nguyen, Hang T.
  • Ross, William T.
  • Pancras, Joseph
  • Phan, Hieu V.

Abstract

This research examines the total value impact of cobranding in new product introductions and how the value is distributed between partners. Analysis of 728 cobranded new products in the consumer electronics and packaged goods industries reveals that cobranding does not always create value for partnering firms. In most cases, any value created is distributed asymmetrically between partners. Consistent with resource dependence theory, we find that relative dependencies of partners’ market-based assets (MAs) significantly drive the variance in cobranding value creation and distribution. MA interdependence such as brand, channel, and capability complementarities leads to higher value creation and lesser value asymmetry. In contrast, MA imbalance in terms of brand, channel, and capabilities between partners results in lower value creation and greater value asymmetry. These effects are more pronounced under high market demand uncertainty and competition. The findings offer useful implications for firms looking to build a successful cobranding strategy.

Suggested Citation

  • Nguyen, Hang T. & Ross, William T. & Pancras, Joseph & Phan, Hieu V., 2020. "Market-based drivers of cobranding success," Journal of Business Research, Elsevier, vol. 115(C), pages 122-138.
    • Handle: RePEc:eee:jbrese:v:115:y:2020:i:c:p:122-138
    DOI: 10.1016/j.jbusres.2020.04.046
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    3. Vaidyanathan, Rajiv & Aggarwal, Praveen, 2022. "Asymmetric brand alliances: When joint promotions with strong brands hurt," Journal of Business Research, Elsevier, vol. 141(C), pages 213-228.
    4. Healey, John & Mintz, Ofer, 2021. "What if your owners also own other firms in your industry? The relationship between institutional common ownership, marketing, and firm performance," International Journal of Research in Marketing, Elsevier, vol. 38(4), pages 838-856.
    5. Hengameh Fakhravar & Hesamoddin Tahami, 2022. "International Co-Branding and Firms Finance Performance," Papers 2202.07128, arXiv.org.
    6. Suzuki, Satoko & Kanno, Saori, 2022. "The role of brand coolness in the masstige co-branding of luxury and mass brands," Journal of Business Research, Elsevier, vol. 149(C), pages 240-249.

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