An Empirical Study On Brand Joint Market Effect Based On Brand Extension

Brand has become the most valuable intangible assets in the company. It is more and more important for the firm to manage and develop their brand and the phenomenon shows a tendency of continuous growth. Since the1990s, more and more brand owners began to focus on brand alliance, because brand alliance is a good approach to add the firm’s brand equity value. If the two partner brands with the same value orientation cooperate, it can create a huge force and be able to win higher yields and brand value for two partner. At the same time, if the two partner brands together carry on the strategic management, enterprises will face more challenges.Well-known brands in the brand extension can choose co-branding strategy to improve the likelihood of its success. However, many different forms of brand alliance, providing a wide selection of channels at the same time, also bring the risk of strategic choice. In this paper, the author with empirical research methods compares different market effects that different forms of co-branding strategy bring for the brand extension.This article will focus on the several different kinds of co-branding strategies can bring different market effects for well-known brand in brand extension, which can be understood from three aspects:first, we compare market effect generated co-branding strategy with no ally in the parent brand’s perceived quality, brand attitude and purchase intention; Second, we compare one ally with multiple-brand alliance in the brand’s perceived quality, brand attitude and purchase intention; Third,we compare product type one ally with homogeneous three allies in brand perceived quality, brand attitude and purchase intention, and also compare multi-branding in homogeneous with heterogeneous union in brand perceived quality, brand attitude and purchase intention comparison. Which suggests that enterprises in brand extension should choose which type of co-branding can increase the likelihood of success and reduce the risk.In this article, though questionnaire the author collect the data related the parent brand’s perceived quality, brand attitude and purchase intention. With internal consistency reliability coefficient method we test variables, the results Cronbach’a coefficients were greater than0.9, indicating that the scale reliability and good stability. Using analysis of variance factor analysis for hypothesis testing results showed a high degree. The results showed that several different forms of co-branding on the parent brand perceived quality, brand attitude and purchase intention are different; number of partnership brands is not possible, and its effects depend on the type of partner brand. homogenous ally effect seems to be higher than the heterogeneous ally effect, and product type partnership brands than brand type partnership brands seems to be more contribute to the success of co-branding strategyThis paper is divided into six parts: The first part introduces the research background of this paper, theoretical significance, practical significance and possible innovation and so on. The second part is about the recent domestic and international co-branding relevant reviews, focusing on the theoretical results closely related with this study. The third part of this study describes the model and hypotheses. The fourth part is the research design, mainly on the variable scale, questionnaire design and experimental process. The fifth part is about data analysis and testing, including test reliability and validity testing, and hypothesis testing. Part VI discusses results of this study with the results and recommendations for corporate marketing.