Casey E. Newmeyer and Julie A. Ruth
Marketing managers have strategic choices when forming brand alliances. One such choice is integration, defined as the extent to which the offering is a fusion in the form and…
Abstract
Purpose
Marketing managers have strategic choices when forming brand alliances. One such choice is integration, defined as the extent to which the offering is a fusion in the form and function of the partner brands. The paper aims to investigate how integration affects consumer attribution of responsibility to brand alliance partners.
Design/methodology/approach
This paper builds on the previous study on brand alliances and attribution theory. Multiple experiments are used to test three hypotheses.
Findings
This research shows that consumers are sensitive to the level of alliance integration, which, in turn, affects attributions of responsibility for the joint offering. Consistent with attribution theory, results show that responsibility for each brand varies systematically by integration and lead brand status vis-à-vis the alliance: while consumers perceive both brands as equally responsible for higher integration brand alliances, responsibility attributions diverge in lower integration alliances based on whether the brand is the alliance host. This pattern also holds for product-harm events.
Research limitations/implications
It is important to explore brand alliance characteristics and to date, the level of integration between the partners has not been considered from a consumer standpoint. Consumers are sensitive to the level of partner brand integration and this perception influences perceptions of responsibility.
Practical implications
Managers should be aware that the level of brand alliance integration and lead brand status lead to different attributions of responsibility, which is strategically important, as brands seek to take credit in positive contexts and avoid blame for negative events.
Originality/value
This paper explores brand alliances via the level of integration and leads brand status, which are key determinants of consumer attributions of responsibility.
Details
Keywords
Casey E. Newmeyer, Efua Obeng and John Hulland
Drawing on the brand alliance, cause marketing and corporate social responsibility literatures, the authors introduce the notion of international cause alliances. The authors…
Abstract
Purpose
Drawing on the brand alliance, cause marketing and corporate social responsibility literatures, the authors introduce the notion of international cause alliances. The authors conceptualize international cause alliances as strategic partnerships between international causes and for-profit companies with the stated purpose of raising funds for the cause. Beyond signaling that companies are socially responsible, international cause alliances may also help companies increase brand awareness or expand into new markets. Because international cause alliances take many forms and differ in the extent to which the brands are integrated, they have very different strategic implications. The purpose of this paper is to discuss these implications in a framework as well as providing managerial direction for both for-profit companies and causes when forming such alliances.
Design/methodology/approach
Using literature on brand alliances, cause marketing, and corporate social responsibility as a foundation, the authors introduce the notion of international cause alliances. The authors review literature to understand the many forms of alliances and investigate the extent to which brands are integrated. The authors then use these implications to develop a framework that can guide managerial decision-making for both for-profit companies and causes when forming such alliances.
Findings
The research suggests that to effectively develop international cause alliances, the organization involved must be aware of the challenges and potential benefits that these partnerships produce. For instance, while highly integrated alliances involve large resource commitments they also facilitate brand image spillover. As such, these alliances are a great way for companies to alter customers’ perceptions of their brands. Alternatively, low integration alliances require fewer resources and facilitate market expansion.
Research limitations/implications
This research identifies strategies that companies and causes can use to either expand their markets or alter customers’ perceptions of their brands.
Originality/value
This paper presents a framework that companies and causes can use when forming international cause alliances.