Abstract
Companies are attempting to increase their competitiveness using a number of strategies. The brand alliance strategy, which is one of the most commonly employed methods, has a favorable impact on the company's market share due to the strong recognition of a well-known brand in the early stage of market entrance. The main purpose of this study is to examine the effect of ingredient brand awareness on the consumers’ evaluation of host brands. With the purpose of it, the study examined the changes of attitudes toward the host brands by ingredient’s brand awareness (high/low).We also tested the moderating roles of consumers’ regulatory focus (promotion/prevention focus) on the relationship between ingredient brand awareness and host brands attitude. The results of this study are summarized as follow. First, consumers tend to be more favorable toward host brand products when brand awareness was higher than lower. Second, the effect of consumers’ regulatory focus (promotion focus/prevention focus) was found to be positive and significant effect between ingredient brand awareness and host brand attitude. Based on the findings, the theoretical and managerial implication are discussed. Keywords: Ingredient Brand Awareness, Psychological Distance Cue, Consumer Regulatory Focus, Brand Attitude, South Korea. DOI: 10.7176/EJBM/13-20-04 Publication date: October 31 st 2021
Highlights
A variety of brand alliance strategies are being employed to boost the company's profitability
The difference in attitudes toward the host brand according to the ingredient brand awareness, and the regulatory focus and gender were examined
As a result of analyzing the effect of ingredient brand awareness on consumer attitude toward the host brand product, it was found that consumers showed a more favorable attitude toward the host brand product when the ingredient brand awareness was high than low
Summary
A variety of brand alliance strategies are being employed to boost the company's profitability. Brand alliance strategy takes the form of co-branding, which combines two or more existing brands . Ingredient branding, and collaborative promotions are all examples of co-branding. According to the research studies, there are two types of co-branding strategies: Symbolic co-branding and ingredient branding. The first technique entails linking a second brand with the host brand in order to provide symbolic additional attributes (Cegarra and Michel, 2000). Important characteristics of one brand are used as ingredients in another brand (Desai and Keller, 2002). The host brand in a co-branding is the “brand that originated from the product category in which the co-branded product is launched” (Cegarra and Michel, 2000), whereas the ingredient brand is the one that manufactures the ingredient or has the know-how to incorporate it into the final product
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