MODELING THE EFFECT OF BELIEF REVISIONS ON THE SUCCESS OF CO-BRANDING
MODELING THE EFFECT OF BELIEF REVISIONS ON THE SUCCESS OF CO-BRANDING

Summary/Abstract: This paper provides a normative guideline regarding the successful formation of co-branding alliances for both academic researchers and practitioners. We use the expectancy-value model to quantify the mechanism of belief revision in co-branding. Starting from this, an existing mathematical model is adapted in order to investigate (1) the influence of belief revisions on the necessary condition of a successful co-branding alliance (i.e., a sufficient amount of required expansion for the partnering brands) and (2) the existence of an ideal situation that ensures the success. The resulting propositions show that belief revisions can affect a brand’s intention with respect to a co-branding partnership. A simulation study demonstrates that an ideal situation exists when the partnering brands are similar in the magnitude of customers’ belief revision, brand reputation, and customer loyalty. The present paper advances existing knowledge by relating the success of co-branding partnerships to consumer evaluations. Managerial implications and future research directions are also discussed.

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