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Trial, repeat purchase and spillover effects of cobranded extensions

Vijay Ganesh Hariharan (Department of Business Economics, Erasmus University, Rotterdam, The Netherlands)
Ram Bezawada (Department of Marketing, State University of New York at Buffalo, Buffalo, New York, USA)
Debabrata Talukdar (Department of Marketing, State University of New York at Buffalo, Buffalo, New York, USA)

Journal of Product & Brand Management

ISSN: 1061-0421

Article publication date: 13 April 2012

2271

Abstract

Purpose

This study aims to examine the factors that drive consumers' trial and repeat purchases of cobranded extensions, and the amount of spillover effects on host and ingredient brands.

Design/methodology/approach

The analysis uses a comprehensive consumer transaction dataset that includes the actual introduction of four cobranded extensions. The authors develop a conceptual framework and three empirical models to explain how consumers' prior experience with the parent brands affect their trial and repeat purchase behaviors, and how their experiences with the cobranded extensions further affect parent brand purchases.

Findings

The results from the study indicate that repeat purchases are higher for consumers with more joint purchase incidences in both host and ingredient categories when they have complementary features. In contrast to existing research on single‐brand based extensions, it is found that host brand loyalty has a positive effect on both trial and repeat purchases when the host brand is not a market‐leader. Due to the introduction of the cobranded extension, host brand experiences a negative spillover whereas ingredient brand experiences a positive spillover.

Practical implications

The results from the study suggest that while initial targeting for the cobranded extension should be focused on consumers who are loyal to both host and ingredient brands, later targeting should be focused on consumers who are loyal to only the host brand.

Originality/value

The study contributes to the existing literature on cobranded extensions by using actual purchase data to analyze the adoption of cobranded extensions.

Keywords

Citation

Ganesh Hariharan, V., Bezawada, R. and Talukdar, D. (2012), "Trial, repeat purchase and spillover effects of cobranded extensions", Journal of Product & Brand Management, Vol. 21 No. 2, pp. 76-88. https://doi.org/10.1108/10610421211215409

Publisher

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Emerald Group Publishing Limited

Copyright © 2012, Emerald Group Publishing Limited

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