Company News • 05.03.2015

Launching a new brand: Is partnering with a popular brand a good idea?

Companies should carefully manage the presence and timing of performance promises when promoting brand partnerships

Partnering with an existing brand can be beneficial for a new brand, but this...
\"Partnering with an existing brand can be beneficial for a new brand, but this is not always the case\", says author Marcus Cunha Jr.
Source: Terry College of Business, University of Georgia

If you're trying to sell a new brand of cereal, teaming up with Kellogg's or General Mills would seem like a really great idea. However, a new study in the Journal of Consumer Research shows that partnering with established brands may not always benefit new brands.

"Our findings call into question a cornerstone of marketing practice. There are times when partnering with an existing brand can actually be detrimental to a new brand. Because an established brand gets more attention from consumers, this can prevent consumers from associating any benefits of the partnership with the new brand," write authors Marcus Cunha Jr. (University of Georgia), Mark R. Forehand (University of Washington), and Justin W. Angle (University of Montana).

In three studies, consumers either learned about a new brand announced as part of a partnership with a popular brand or they learned about the new brand in isolation. When a new brand partnered with an existing brand and announced this immediately, consumers viewed the new brand less favorably than when they learned about the new brand in isolation. However, when the announcement was delayed, consumers viewed the new brand that had partnered with an existing brand more favorably.

Companies should carefully manage the presence and timing of performance promises when promoting brand partnerships. When including brand partnership and performance information in a single advertisement, performance promises should be made at the end of the advertisement. However, new brands may want to avoid print advertisements when advertising brand partnership performance because there is no delay between announcing the partnership and its promised benefits.

"Partnering with an existing brand can be beneficial for a new brand, but this is not always the case. New brands should avoid announcing partnerships with established brands that immediately communicate information about the benefit of the partnership because consumers will not associate the new brand with that benefit. Companies should understand when partnerships help and when they hurt," the authors conclude.

For more information, contact Marcus Cunha Jr. (cunhamv@uga.edu) or visit http://ejcr.org/.

Source: Journal of Consumer Research

related articles:

popular articles:

Thumbnail-Photo: SES-imagotag becomes VusionGroup
29.01.2024   #software applications #artificial intelligence

SES-imagotag becomes VusionGroup

A new identity highlighting the broader portfolio of innovative solutions
developed by the Group to solve the major challenges of physical commerce

SES-imagotag (Euronext: SESL, FR0010282822), the global leader in digital solutions for physical commerce, today announced that it has changed its name to VusionGroup. This new name embodies the various product lines and solutions that have enhanced ...

Thumbnail-Photo: Record numbers for ITL at EuroCIS retail show in Düsseldorf...
07.03.2024   #self-checkout systems #POS software

Record numbers for ITL at EuroCIS retail show in Düsseldorf

Innovative Technology (ITL) reported a successful EuroCIS in Düsseldorf last week, where the organisers announced record visitor numbers. EuroCIS provides an exclusive hotspot for Retail Technology in Europe, ...

Thumbnail-Photo: EuroCIS 2024 - technology special
11.12.2023   #online trading #e-commerce

EuroCIS 2024 - technology special

The latest technology solutions and trends for you and the retail sector

At EuroCIS 2022 from February 27 to 29, 2024, the Leading Trade Fair for Retail Technology, we will be looking at all the important and current topics relating to technology in retail: AI and Machine Learning, Payment, Connected Retail, Seamless Store and Smart Energy Management and many more.

Thumbnail-Photo: First of its kind accessible checkout unveild by Woolworths, creating...
03.01.2024   #Tech in Retail #cashpoints

First of its kind accessible checkout unveild by Woolworths, creating new employment opportunities

Breaking Barriers in Retail: Woolworths' New Checkout Design for Wheelchair Users

In what is believed to be a world first, Woolworths has unveiled an accessible checkout, designed specifically for team members living with a physical disability, including people who use wheelchairs and other mobility aids such as walkers.The first ...

Thumbnail-Photo: Ask the Bot: generative AI in retail
02.01.2024   #Tech in Retail #food retail

Ask the Bot: generative AI in retail

Revolution in retail: the era of generative AI and AI bots

They are able to analyse data, write product descriptions, answer shoppers’ questions or write codes...

Thumbnail-Photo: Classic POS reimagined
14.03.2024   #POS systems #printers

Classic POS reimagined

Introducing the new generation CT-S801III and CT-S851III
POS printer range.

Citizen Systems launches new CT-S801III ...

Thumbnail-Photo: ‘Problem-solving mission’ with updated Modern Store Framework...
16.02.2024   #Tech in Retail #personnel management

‘Problem-solving mission’ with updated Modern Store Framework

Zebra Technologies will be looking to address challenges with expertise and new solutions at EuroCIS

Zebra Technologies Corporation (NASDAQ: ZBRA), a leading digital solution provider enabling businesses to intelligently connect data, assets, and people, today announced it’s taking the newly enhanced Modern Store framework on a ‘problem ...

Thumbnail-Photo: Wayfair Announces Decorify App for Apple Vision Pro...
15.02.2024   #Tech in Retail #virtual reality

Wayfair Announces Decorify App for Apple Vision Pro

Wayfair's virtual room styler and 3D imaging tools enable Apple Vision Pro users to reimagine their living spaces and experience the future of shopping in their home

With the Wayfair Decorify app on Apple Vision Pro, users have a variety of options to see their spaces redesigned. They can upload a photo of their space ...

Thumbnail-Photo: EuroCIS Germany next stop for ITL’s cash handling and age verification...
13.02.2024   #Tech in Retail #artificial intelligence

EuroCIS Germany next stop for ITL’s cash handling and age verification solutions

Innovative Technology Ltd (ITL) will be joining retail suppliers and industry professionals at ‘EuroShop 2024 – the leading trade fair for retail technology’ which takes place in Düsseldorf, Germany from ...

Thumbnail-Photo: The global state of autonomous stores
18.12.2023   #Tech in Retail #self-checkout systems

The global state of autonomous stores

The stores are located in various retail segments such as food retail, fashion, electronics, convenience stores and fast food.

In a highly competitive global retail landscape, autonomous stores are an emerging force that addresses changing consumer behaviors, reduces operational costs, improves profitability, and powers revenue growth strategies. Advancements in autonomous ...

Supplier

SALTO Systems GmbH
SALTO Systems GmbH
Schwelmer Str. 245
42389 Wuppertal
Innovative Technology Ltd.
Innovative Technology Ltd.
Innovative Business Park
OL1 4EQ Oldham
Zebra Technologies Germany GmbH
Zebra Technologies Germany GmbH
Ernst-Dietrich-Platz 2
40882 Ratingen
VusionGroup SA
VusionGroup SA
55 place Nelson Mandela
90000 Nanterre