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Perceived Quality and Customer Purchase Intent of Brand Alliance:. The Co-Branding Strategy of LG and Prada Luxury Cell phone. The High Growth Rate of the High-end Mobile Market. LG PRADA MOBILE. Co-Branding Strategy Make It Better?. - PowerPoint PPT Presentation
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Perceived Quality and Customer Purchase Intent of Brand Alliance:
The Co-Branding Strategy of LG and Prada Luxury Cell phone
The High Growth Rate of the High-end Mobile Market
The Growth Rate of Global Mobile Phone
0102030405060708090
2004 2005 2006 2007
Year
Gro
wth
Rat
e (%
)
Total market
Low-end(under $100)
High-end(over $350)
LG PRADA MOBILE
Co-Branding Strategy Make It Better?
• Do consumers feel better quality on the co-branding mobile phone?
• Does the co-branding strategy stimulate stronger purchase intention of consumers?
+
Literature Review(1)
• Co-Branding– McCarthy and Norris (1999) - One kind of marketing strategy which
indicates the using brand name of the product content ingredient, and presents jointly with the product brand
– 蔡宜蓉 (2004) - The product brand combines with two different extant brands
• Perceived Quality– Anker(1991) - The important product assessment in the consumer’s
heart, also be the foundation of value reward and brand extends
– Zeithaml (1998) - The whole assessment for consumer judges the product superiority
Literature Review(2)
• Measurement Surface of Perceived Quality– Dodds 、 Monroe and Grewal (1991) - faith, quality, manufacture tec
hnology, reliability, durability
• Purchase Intent– Dickson and Sawyer (1990) - When the purchase intent is decided to
recognize the value of the brand and the inducing promotion activities. The consumer can judge the product value whether is higher than the price which pays, if it is positive, then the purchase intent probability will enhance
Literature Review(3)
• The Relationship of Perceived Quality and Purchase Intent– Aaker and Keller (1990) - Separately take perceived quality and purc
hase intent into the measurement of brand assessment. The perceived quality and purchase intent have independent relationship
– Zeithaml (1988) - The consumer’s purchase intent is decided by the level of perceived quality and purchase intent. The perceived quality and purchase intent have causal relationship
• The Relationship of Co-branding and Perceived Quality– Rao 、 Qu and Rukert (1999) - Uses the multi-factors experiment des
ign obtains the research results. It pointed out when execute co-branding that consumer's perceived quality will be enhance
Research Hypothesis(1)
• The research of Ruekert(1999) discovers that if the attribute of the product which can not be observed, the perceived quality and purchase intention would arise when that brand ally with the other brand
• This study assumes compared with the no-brand-alliance and brand alliance, can make better perceived quality and purchase intention
Research Hypothesis(2)
• H1 : To execute co-branding will let consumer has better perceived quality against did not execute co-branding.
• H2 : To execute co-branding will let consumer has better purchase intent against did not execute co-branding.
Methodology(1)
• Independent variable defines : co-branding 、 no co-branding
• Dependent variable defines : perceived quality 、 purchase intent
Co-Branding
No Co-Branding
Perceived Quality
Purchase Intent
Methodology(2)
• Perceived quality– Use the five dimensions in the research of Dodds, Monroe& Grewal(1
991) method (faith, quality, manufacture technology, reliability, durability)
• Purchase intent– Use the adjusted scale sheet developed by Mackenzie(1986) to measur
e the participants’ possibility to buy the mobile phone
Questionnaire Design
• Perceived quality: Measured by five questions
• Purchase intent: Measured by four questions
Sample source• Our participants are the sixty students of National Chiao Tung
University. We deliver to them and collect the first-hand data from the questionnaire
Analysis-H1
• Table 1: the T-test result of perceived quality
Co-branding No co-branding
Notes
Sample size 57 57 57/60
Scores mean 4.8175 3.8702 Diff=0.9474
Scores std dev 1.4947 1.2308 Diff=1.3691
T-test value 8.26 df=568
P-value <0.0001 Highly significant
Analysis-H1
• Table 2: the T-test result of each dimension of perceived quality
Mean diff Std dev diff T-test value P-value significant
Confidence 1.2456 1.1517 5.77 <0.0001 Highly
Function 0.1404 1.3044 0.57 0.5668 No
Quality 1.3333 1.3011 5.47 <0.0001 Highly
Reliability 1.2632 1.4049 4.80 <0.0001 Highly
Durable 0.7544 1.4193 2.84 0.0054 Yes
Discussion-H1
• Once LG cooperate with Prada, people have more confidence, reliability, feel quality and durable better about this LG-Prada cell phone. But essentially, function dimension be affected from LG more than Parada. Prada is a fashion company not a technology one, so people don’t think the function of LG-Prada cell phone would be improved a lot.
Discussion-H1
• Table 5: the perceived quality scores
Co-branding No co-branding
Confidence 5.2456 4
Function 4.1579 4.0175
Quality 5.2105 3.8772
Reliability 5.2632 4
Durable 4.2105 3.4561
Discussion-H1
• The line chart of the perceived quality scores
Line Chart
4.2105
3.4561
4.1579
5.2456 5.2105 5.2632
4.01754
3.87724
0
1
2
3
4
5
6
Confidence Function Quality Reliability Durable
Purchase Intent
Sco
re
Co-branding
No co-branding
Conclusion-H1
• The LG-Prada’s co-branding cell phone has the higher perceived qulality more than the LG’s cell phone.
Analysis-H2
• Table 3: the T-test result of purchase intent
Co-branding No co-branding Notes
Sample size 57 57 57/60
Scores mean 4.5283 3.4634 Diff=1.114
Scores std dev 1.6649 1.2888 Diff=1.4888
T-test value 7.99 df=454
P-value <0.0001Highly significant
Analysis-H2
• Table 4: the T-test result of each dimension of purchase intent
Mean diff Std dev diff T-test value P-value significant
Understand 1.4737 1.2629 6.23 <0.0001 Highly
Like 1.4912 1.4762 5.39 <0.0001 Highly
Try 1.4211 1.4104 5.38 <0.0001 Highly
Purchase 0.0702 1.3083 0.29 0.7752 No
Discussion-H2
• LG is a famous technology company but they are not the best one. Once they cooperate with Prada ,people has more willing to understand and try this cell phone and like it more.
Discussion-H2
• Table 6: the purchase intent scores
Purchase intent scores
No co-branding Co-branding
Understand 3.8947 5.3684
Like 3.5439 5.0351
Try 3.8246 5.2456
Purchase 3.2632 3.3333
Discussion-H2
• The line chart of the purchase intent scores
Line Chart
5.24565.03515.3684
3.33333.8947 3.5439 3.8246
3.2632
0
1
2
3
4
5
6
7
Understand Like Try Purchase
Purchase Intent
Scor
e Co-branding
No co-branding
Conclusion-H2
• The LG-Prada’s co-branding cell phone has the higher consumers’ purchase intent more than the LG’s cell phone.
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