Investigating the Effects of Price and Brand Leveraging Strategy on Consumer’s Behavioral Intention (Case Study: Daily Food Products)

Seyed Fathollah Amiri Aghdaie,Hossein Rezaei Dolatabadi,Maryam Adibparsa

doi:10.5539/ijbm.v7n22p76

Seyed Fathollah Amiri Aghdaie, Hossein Rezaei Dolatabadi + Show 1 more

Open Access

https://doi.org/10.5539/ijbm.v7n22p76

Copy DOI

Abstract

Marketers often use a credible and familiar brand name on their products to highlight the unobservable quality and important attributes of the products. Drawing on signaling theory, brand leveraging strategy is the presence of credible and familiar brand along with the primary brand on the product. Conceptualizing from the co-branding literature, brand leveraging strategy enhances consumer's evaluations of product quality, perceptions of value and their willingness to buy. This study examines how the effects of price and combining two brand names influence consumer's evaluation of a product. The study findings offer empirical evidence that applying of brand leveraging strategy results in higher perceived quality. Product cues such as (brand names and price) must be positively consistent to gain the highest perceived quality from consumers. This study provides some important implications for marketers attempting to implement brand leveraging strategy, and for consumers to understand the presence of a credible and familiar brand name as signal of an unobservable product quality and important attributes.

Highlights

The focus of this study concerns issues related to introducing to the market a new line of products and the alternative branding strategies it might use
This study provides some important implications for marketers attempting to implement brand leveraging strategy, and for consumers to understand the presence of a credible and familiar brand name as signal of an unobservable product quality and important attributes
Recognizing that previous co-branding research has not explicitly tested the effect of price on consumers' perceptions of quality, the price-quality-value model is used. Price serves both as a signal of perceived monetary sacrifice and as a signal of product quality (Kotler, 1991; Monroe, 2003)

Summary

Introduction

The focus of this study concerns issues related to introducing to the market a new line of products and the alternative branding strategies it might use. When consumers are uncertain as to the quality of an offering, sellers can provide cues or signals that are credible and, capable of conveying information to consumers about the product's quality and performance capability. Such cues include setting a relatively high price, offering a temporary introductory low price to induce trial, heavy advertising expenditures, providing a warranty or money-back guarantee, using a third party verification of product quality from a credible certification agency or using a credible and familiar brand name with the primary brand. The brand partner plays a role in verifying certain product attributes

Objectives

Methods

Results

Conclusion