Improving competitive position using branded ingredients

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 consis...

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Bibliographic Details
Published in:The journal of product & brand management 1999-08, Vol.8 (4), p.267-285
Main Authors: McCarthy, Michael S, Norris, Donald G
Format: Article
Language:English
Subjects:
Alliances
Attitudes
Brand equity
Brand names
Brands
Co-branding
Competition
Competitive advantage
Experiments
Ingredients
Market strategy
Marketing
Marketing strategy
Perceptions
Price levels
Product management
Product quality
Statistical analysis
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Summary: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.
ISSN:1061-0421
2054-1643
DOI:10.1108/10610429910284210