Ingredient branding and feedback effects: The impact of product outcomes, initial parent brand strength asymmetry, and p
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Ingredient branding and feedback effects: The impact of product outcomes, initial parent brand strength asymmetry, and parent brand role Jeffrey P. Radighieri & Babu John Mariadoss & Yany Grégoire & Jean L. Johnson
# Springer Science+Business Media New York 2013
Abstract Ingredient branding is a popular strategy involving two “parent” brands developing a co-branded product, called an ingredient branding offering (IBO). Drawing on extant brand literatures, we investigate how brand feedback effects are influenced by (1) the initial brand strength among the parent brands (low vs. high), (2) parent brand roles (whether the brand is the host or ingredient), and (3) IBO success and failure. Three experiments indicate that IBO success positively affects both parent brands, but the positive feedback is much more substantial for the weaker (vs. the stronger) brand. Under the failure condition, the strong ingredient brand is the only parent that is somewhat protected from an IBO failure. All the other IBO possibilities—in terms of brand strength and parent role—suffer from substantial negative feedback and share a high level of responsibility for the failure. Managerial and theoretical implications are drawn from these results. Keywords Ingredient branding . Brand alliance . Feedback . Brand failure . Associations An ingredient branding offering (IBO), the incorporation of parent brand attributes as ingredients into another brand (Desai and Keller 2002), allows two brands to enter into a cooperative arrangement to increase market competitiveness (Simonin and Ruth 1998). An IBO capitalizes on established brand equities by integrating features of existing brands into the design of a new product. The IBO parent brands are the “host,” the main product, and the “ingredient,” a component that is integrated into the J. P. Radighieri (*) Marketing Department, School of Business Administration, University of Houston-Victoria, 14000 University Blvd, Sugar Land, TX 77479, USA e-mail: [email protected] B. John Mariadoss : J. L. Johnson Department of Marketing, College of Business, Washington State University, Pullman, USA Y. Grégoire Department of Marketing, HEC Montréal, Québec, Canada
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IBO. For example, Dell computer is the host and an Intel microprocessor is the ingredient in the IBO “Dell with Intel Inside.” Research on ingredient branding examines the determinants of IBO success (Desai and Keller 2002) as well as their feedback or spillover on the hosts and IBOs (Park et al. 1996; Rodrigue and Biswas 2004). IBO feedback effects (i.e., changes in consumers’ evaluation of the parent brands subsequent to an IBO) involve changes in consumer attitudes toward the original parent brands resulting from the IBO. Research hints that different combinations of branded and unbranded components in an IBO may result in differing impacts on the parent brands (Venkatesh and Mahajan 1997). In light of the growing popularity of IBOs, key questions emerge. (1) A key concern is the effect of IBO feedback on the two parent brands should
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