CoBranding

1
Co-Branding

• Higher order conditioning association
• Two brands are deliberately paired
• Favourable attitude to second brand due to
  positive attitude to first brand
• MI

2
Does it Work?

• Well sometimes

3
Prior Associations

• First brand should be familiar, popular
• Coca-Cola
• Celebrities, characters, Olympics, concepts,
  music, even colour
• Not an ideal co-branding candidate
• Change the context
• Present familiar brand in different context,
  causing increased attention processing

4
Belongingness

• See Rescorla Furrow (1977) classic study on
  2nd order stimulus similarity increasing learning
  rate
• Similar to product-model match
• Need to find some way to link two brands
• Worked Bill Cosby and Jello
• Failed Bill Cosby and E.F. Hutton

5
Similarity

• Too much similarity can work against brand
• E.g., see Rescorla Gillan (1980), exp. 2
• Mistake other brands for co-brand
• Salem cigarettes
• Freshness positioning
• Other brands followed this
• Consumers made association to more familiar Salem
  ads, benefiting Salem

6
Bidirectional?

• Associative conditioning could work both ways
• Familiar brand (CS1) can be influenced by
  targeted brand (CS2)
• Negative affect from targeted brand
• Greater attention paid to familiar brand more
  processing
• Erosion (additional associations weaken those
  initially created)

7
Changing CS1 Post 2nd Order Conditioning

• Rescorla (1973), Holland Rescorla (1975a,b)
• 2nd order conditioning
• Tone light as CSs, food as US
• Devalue US via satiation or rapid rotation
  extinction of CS1
• Reduced CR for CS1 but not for CS2
• Subsequently restoring US returns some CR for CS1
  (not a repairing of CS1-US here)

8
Brand Counterfeiting

• Illegally made products resembling genuine
  product
• Traditionally lower quality
• Starting to shift for some counterfeits
• Outsourced factories run extra fake shift
• Sometimes shifts counterfeiters into legitimacy
• Becoming a serious problem
• Over 600 billion in sales

9
Types

• Deceptive
• Consumer unaware product is fake
• Nondeceptive
• Consumer is aware product is fake
• Especially prevalent in luxury brand markets

10
Reasons to Purchase

• See Eisend Schuchert-Guler (2006)
• Person
• Demographic and psychological issues
• E.g., purchasers often of lower social status
• Aspects of product
• Price, uniqueness, availability
• E.g., likelihood of purchase negatively related
  to price
• Social and cultural
• Cultural norms to shopping environment
• E.g., consumer more likely to purchase
  counterfeit if shopping experience more appetitive

11
Attitudes

• Social-adjustive attitude (SAA)
• Purchase motivated by effort to improve
  individuals approval level in social situations
• Status-symbol
• Value-expressive attitudes (VEA)
• Purchase demonstrates consumers central
  beliefs, attitudes, values
• Self-expression
• Luxury brand purchases may serve both these
  functions

12
Ad-Consumer Interaction

• See Snyder DeBono (1985)
• If holding SAA, more favourable to product
  appeals showcasing social validation goals
• If motivated by VEA, consumer more favourable to
  ads highlighting intrinsic aspects (product
  function appeals)

13
Luxury Items Counterfeits

• VEA will motivate purchase for product function
  (quality-related reasons)
• Less likely to purchase luxury counterfeits
• SAA will motivate purchase of counterfeit luxury
  items (aim is to make social statement)
• More likely to purchase luxury counterfeits

14
Brand Identifiability

• Recognizable logo/brand characteristic
• Easier higher-order conditioning vector
• Real product already paired with celebrity,
  sports figure, social class, etc.
• Logo serves as CS2 for idealized trait

15
High Recognition Brand Counterfeits

• Counterfeit gives same association, but for less
  money
• Appearance of social eliteeven if you arent
• Actual quality irrelevant for social validation
  vector
• Surface level analysis

16
Quality-Driven Luxury Brands

• Often non-explicit logo, characteristics, etc.
• Luxury detail based on subtle quality
  distinctions
• If you have to ask
• Not ideal items for counterfeit
• VEA-driven, not SAA-driven
• 2nd order conditioning just not there to begin
  with
• Salience on identifying these luxury items is low

17
Consumer Personality Traits

• Moral/ethics re counterfeit
• Lower on scale more likely to purchase
• High-self monitors
• More likely to adopt SAA
• Low-self monitors
• More likely to adopt VEA

18
Anti-Counterfeiting Campaigns

• Difficult to police
• Negative publicity to designer brands
• E.g., Louis Vuitton
• Fashion industry appeals
• Hurts designers
• Appealing to those who can already afford
  high-end luxury items
• Negative ad framing
• Might highlight loss in social status if
  counterfeit detected

19
Knock-offs

• Technically, not counterfeits
• Inspired by more innovative, higher-end brands
• E.g., GAP, HM
• Lacks the same moral/ethical objections to
  purchase

Kim Kardashian
Knock off