Abstract
Co-branded advertising (two brands featured in the same ad) is a relatively new and under-researched area of advertising that offers advertisers the opportunity to share advertising costs and leverage brand equity. Despite its growing popularity, few research studies have examined the potential benefits and/or limitations of this executional strategy, and particularly a strategy in which one brand (a focal brand) is paired with another, but less emphasized (peripheral) brand. This study reports the results of an empirical investigation that examines how modifying reference to the peripheral brand (visual-only versus simultaneous visual and audio references) influences consumers' perceived associations of the advertised brands, as well as their attitudes toward the advertisement and intentions to purchase either brand. Employing a convenience sample of undergraduate students on a university campus in the United States, the results of this study indicate that audio-visual cues enhance brand association and purchase intentions. However, additional analyses reveal that attitude toward a co-branded advertisement mediates the brand association effect on purchase intentions toward the focal brand, whereas brand association has a direct effect on purchase intentions toward the peripheral brand.
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