Evaluating co-branded products: the socioeconomic strata effect

Purpose The purpose of this paper is to identify whether consumer evaluations of products are influenced by the presence of co-branding with a well-known reputable ingredient brand and whether differences in evaluations are related to the socioeconomic stratum of the consumer. Design/methodology/approach These questions were investigated by way of two experiments: the first, using a between-subjects approach that was carried out with 210 subjects and the second, using between- and within-subjects approaches that were carried out with 305 subjects. Findings The results show that: products produced by both little-known and well-known brands are evaluated more favourably when they are co-branded with a well-known ingredient brand; there is no evidence that the co-branding effect on product evaluation is stronger for little-known brand products than for well-known brand products; and there is weak evidence that the co-branding effect on product evaluation is stronger among subjects from lower socioeconomic strata than among subjects from the upper stratum. Research limitations/implications The theory of anchoring alone is insufficient for explaining differences in product evaluations when the co-branding strategy is adopted. It is believed that positive effects can be also interpreted by the assimilation and signalling theories. Practical implications As for the managerial implications, the authors offer insights into the impacts of using a strategic co-branding alliance on the products of little-known brands among consumers from lower and upper strata. Originality/value The study contributes to consumer behaviour literature, specifically with regard to ingredient-brand effects in co-branding strategies from the perspective of the end consumer.