A comparison of the feedback effect of brand extension and co-branding strategies

Rico Piehler, Michael Schade, Marius Diegel, Christoph Burmann

Research output: Chapter in Book/Report/Conference proceedingConference abstractpeer-review

Abstract

This paper investigates if a brand extension or co-branding strategy is more effective for brands extending their business into unrelated product categories. The study examines the feedback effect on the brand for current and potential customers with high and low involvement in the new category. Based on signalling, categorisation and schema theory, this study assumes that a co-branding strategy is more suitable regarding the feedback effect on the brand than a brand extension strategy. The context of the investigation is the sports industry, particularly professional football clubs entering the esports domain to acquire new target groups. An online experiment with 1,482 potential and current fans of two German Football League clubs reveals that the co-branding strategy affects the sports club brand image more than the brand extension strategy. The results show that the co-branding strategy positively affects potential customers without alienating the brand’s current customers.
Original languageEnglish
Title of host publicationSomething different: ANZMAC 2021
Subtitle of host publicationConference Proceedings
EditorsLiliana L. Bove, Simon J. Bell, Abraham Hito
Place of PublicationMelbourne
PublisherThe University of Melbourne
Pages411
Number of pages1
Publication statusPublished - 2021
EventAustralian and New Zealand Marketing Academy Conference (ANZMAC 2021): Something Different - Melbourne, Australia
Duration: 29 Nov 20211 Dec 2021
https://www.anzmac2021.com/

Publication series

NameANZMAC Conference Proceedings
ISSN (Print)1447-3275

Conference

ConferenceAustralian and New Zealand Marketing Academy Conference (ANZMAC 2021)
Country/TerritoryAustralia
CityMelbourne
Period29/11/211/12/21
Internet address

Keywords

  • Brand extension
  • Co-branding
  • Feedback effect

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