Abstract

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.

Highlights

  • The growth of the cosmetics industry in 2019 has increased by 9% compared to the previous year which only reached 7.3%

  • Indonesian local cosmetics brands that have used this strategy are Dear Me Beauty, which has collaborated with Yupi, Sasa, and Nissin Waffer, while Mizzu Cosmetics has collaborated with Khong Guan and Fore Coffee

  • The study finding can be used to improve competitiveness by providing a strategy for the cosmetics industry to achieve co-branding success, especially brands that intend to do cobranding with different sectors, as was done by the two brands mentioned in this research

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Summary

Introduction

The growth of the cosmetics industry in 2019 has increased by 9% compared to the previous year which only reached 7.3%. This increase is supported by the trend of Indonesian people who are gradually aware on the importance of physical appearance as a primary need that triggered to a high demand for beauty products (Kemenperin, 2019). Companies need an effective strategy to expand their market share and consumers. One strategy that is proven to be able to expand market share is co-branding (Helmig, Huber, & Leeflang, 2008)

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