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Improving competitive position using branded ingredients

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148 citations0/0 files storedJournal of Product & Brand Management

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Consumer Market Behavior and Pricing Consumer Behavior and Marketing Influence Consumer Behavior in Brand Consumption and Identification

Abstract

Assesses how branded ingredients affect consumer product quality perceptions, confidence in product quality perceptions, product evaluations, taste perceptions, purchase likelihoods, and reservation prices of host brands of varying quality. In two experiments, we find that branded ingredients consistently and positively affected moderate‐quality host brands, but only occasionally positively affected higher‐quality host brands. Suggests that managers of both moderate and higher‐quality host brands consider implementing branded ingredient strategies, albeit for different reasons. While moderate‐quality host brands can improve their competitive position by using branded ingredients, higher‐quality host brands generally do not. However, higher‐quality host brands may benefit most by securing the most desirable branded ingredients for their own use, thereby blocking moderate‐quality host brands from using a branded ingredient strategy to improve their competitive position.

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References

1993Conceptualizing, Measuring, and Managing Customer-Based Brand Equity 1991Effects of Price, Brand, and Store Information on Buyers' Product Evaluations 1990Consumer Evaluations of Brand Extensions 1989The Effect of Price, Brand Name, and Store Name on Buyers' Perceptions of Product Quality: An Integrative Review 1991Evaluation of Brand Extensions: The Role of Product Feature Similarity and Brand Concept Consistency 1994Extrinsic and Intrinsic Cue Effects on Perceptions of Store Brand Quality 1998Is a Company Known by the Company it Keeps? Assessing the Spillover Effects of Brand Alliances on Consumer Brand Attitudes 1986Consumer Learning: Advertising and the Ambiguity of Product Experience

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