Corporate brands as brand allies

Abstract

Purpose The purpose of this paper is to examine the role of the corporate brand in a brand alliance that includes one of the corporation’s product brands. Design/methodology/approach Using a scenario-based study, 899 participants were randomly assigned to one of 84 unique brand alliance scenarios involving a corporate brand, a product brand ally and a focal product brand; a total of 33 corporate brands were represented. Results were estimated using a three-stage least squares model. Findings Consumers’ evaluations of a focal brand were enhanced when a corporate brand name associated with a product brand ally was included in the brand alliance. The effect was mediated by attitude toward the product brand ally. The indirect effect of the corporate brand was stronger when consumers had low product category knowledge (PCK). Research limitations/implications Consistent with competitive cue theory, the findings suggest that a corporate brand can provide superior, consistent and unique information in a brand alliance. Practical implications Practitioners should note that the effectiveness of adding a corporate brand name into a product brand alliance is contingent on the extent of consumers’ PCK. Originality/value This paper examines when and why corporate brands are effective endorsers in product brand alliances. This paper adds empirical support to previous assertions that, if managed effectively, corporate brands can be valuable assets that convey unique valuable information to consumers.

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