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Understanding consumer reference price behavior in co-branding: from the perspective of a dynamic supply chain

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  • Xiaoqing Wang

    (Qingdao University)

  • Haoyu Yin

    (Qingdao University)

  • Deqing Ma

    (Qingdao University)

Abstract

Co-branding is an effective way for companies to expand their market and increase brand awareness. To study the conditions for a co-branding strategy, we develop a two-stage differential game model involving two manufacturers and an online platform to explore the choice of supply chain members, incorporating consumer reference price behavior. Interestingly, a result shows that manufacturers choose to co-brand if the combined impact factor is large and the revenue-sharing factor is medium, and the response of the platform for this choice is positive. Another finding is that although the impact of co-branding on operational decisions and consumers is uncertain, it is found that proper co-branding is a powerful tool for marketing strategies. In addition, the existence of reference price behavior improves operational decisions and influences the choice of a co-branding strategy. Furthermore, the extended model proves that big data marketing effectively expands the range of co-branding strategy selections.

Suggested Citation

  • Xiaoqing Wang & Haoyu Yin & Deqing Ma, 2025. "Understanding consumer reference price behavior in co-branding: from the perspective of a dynamic supply chain," Electronic Commerce Research, Springer, vol. 25(4), pages 2585-2618, August.
    • Handle: RePEc:spr:elcore:v:25:y:2025:i:4:d:10.1007_s10660-023-09759-5
    DOI: 10.1007/s10660-023-09759-5
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