Market-based drivers of cobranding success

Hang T. Nguyen, William T. Ross, Joseph Pancras and Hieu V. Phan

Journal of Business Research, 2020, vol. 115, issue C, 122-138

Abstract: This research examines the total value impact of cobranding in new product introductions and how the value is distributed between partners. Analysis of 728 cobranded new products in the consumer electronics and packaged goods industries reveals that cobranding does not always create value for partnering firms. In most cases, any value created is distributed asymmetrically between partners. Consistent with resource dependence theory, we find that relative dependencies of partners’ market-based assets (MAs) significantly drive the variance in cobranding value creation and distribution. MA interdependence such as brand, channel, and capability complementarities leads to higher value creation and lesser value asymmetry. In contrast, MA imbalance in terms of brand, channel, and capabilities between partners results in lower value creation and greater value asymmetry. These effects are more pronounced under high market demand uncertainty and competition. The findings offer useful implications for firms looking to build a successful cobranding strategy.

Keywords: Cobranding; Market-based asset; Brand equity; Resource dependence theory; New product; Firm value (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0148296320302721
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:115:y:2020:i:c:p:122-138

DOI: 10.1016/j.jbusres.2020.04.046

Access Statistics for this article

Journal of Business Research is currently edited by A. G. Woodside

More articles in Journal of Business Research from Elsevier
Bibliographic data for series maintained by Catherine Liu ().