Consumer Preference

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American Journal of Scientific Research ISSN 2301-2005 Issue 79 October, 2012, pp.40-47 © EuroJournals Publishing, Inc. 2012 http://www.eurojournals.com/ajsr.htm

Analysis of Factors Affecting Consumer Brand Preference in Brand Alliance Strategy Vahid Shokri Aliabadi Corresponding Author, MBA, Faculty of Virtual Education University of Isfahan, Isfahan, Iran No.5, 2nd Fl., Eghlimi St, Southern Sohrevardi Ave Tehran (15657) Iran, P.O.BOX 15745-511 E-mail: shokri.ui.ac.ir@gmail.com Tel: 98-913-326-0868 Hamed Asgharieh Ahari MBA, Faculty of Virtual Education University of Isfahan, Isfahan, Iran No.5, 2nd Fl., Eghlimi St, Southern Sohrevardi Ave Tehran (15657) Iran, P.O.BOX 15745-511 E-mail: hamed.ahari@hotmail.com Tel: 98-912-290-0714 Masoud Ghasemi Department of Business Administration Tehran Payamnur University, Tehran, Iran E-mail: masoud_ghassemi@yahoo.com Tel: 98-912-335-3176 Abstract The purpose of this study is to analyse the impact of factors such as brand credibility, perceived quality and advertising expenditure on consumer’s evaluation of cobrand preference where brands combine their brands to form a brand alliance. This study can be considered as an applied research from purpose perspective and descriptive-survey with regards to the nature and method (type of correlation). Respondents to the questionnaire were 189 shoppers at one of branches of Refah chain stores in Isfahan city which were selected by simple random sampling method. A series of hypothetical co-brand combinations selected by a pretest were used to examine research hypotheses. Moreover, SPSS software was used in order to analyse and summarize collected data. The study indentified that credibility, perceived quality and advertising expenditure of the second brand (i.e. brand B) in the alliance positively affect consumer’s evaluation of co-brand preference. Results also show that only advertising expenditure of first brand (i.e. brand A) in the alliance has positive influence on consumer’s evaluation of co-brand preference.

Keywords: Co-Branding, Brand Alliance, Brand credibility, Perceived quality

Analysis of Factors Affecting Consumer Brand Preference in Brand Alliance Strategy

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1. Introduction
Crossing from traditional marketing to modern marketing has put firms and companies in a situation in which traditional marketing strategies cannot handle the highly competitive market environment anymore and in that case competitive advantages cannot easily be achieved. Therefore, firms are looking for new solutions and strategies that allow them not only to increase their market share but also to give them better and more distinctive competitive advantages. Companies in various industries have to apply nontraditional, innovative branding strategies, such as co-branding because of unstable environments, dynamic markets, intense competition, and high costs to enter new markets (Desai & Keller, 2002). Co-branding strategy is defined when two brands or more introduce a product jointly to the market or when two or more brands cooperate in marketing activities such as promotion (Rao et al., 1999). Co-branding is a marketing and branding technique which can help firms to compete in the dynamic markets. The definition of Co-branding and brand alliance almost is the same, so that in the marketing literature they are used interchangeably. The most important issue in the field of brand alliance is that why and how consumers evaluate brand alliances and co-branded products. Consumer co-brand preference is an important stage in the brand alliance evaluation process. Various factors may influence consumers’ choice when they expose to products with co-brand names. Thus, having a deep understanding of how consumers evaluate cobranded products and factors affecting this evaluation can be helpful for firms that seeking brand alliance strategy to introduce new products or services to the market. This study is trying to investigate the way by which factors like...
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