This paper provides a normative guideline regarding the successful formation of co-branding alliances for both academic researchers and practitioners. We use the expectancy-value model to quantify the mechanism of belief revision in co-branding. Starting from this, an existing mathematical model is adapted in order to investigate (1) the influence of belief revisions on the necessary condition of a successful co-branding alliance (i.e., a sufficient amount of required expansion for the partnering brands) and (2) the existence of an ideal situation that ensures the success. The resulting propositions show that belief revisions can affect a brandï¿½s intention with respect to a co-branding partnership. A simulation study demonstrates that an ideal situation exists when the partnering brands are similar in the magnitude of customersï¿½ belief revision, brand reputation, and customer loyalty. The present paper advances existing knowledge by relating the success of co-branding partnerships to consumer evaluations. Managerial implications and future research directions are also discussed.
Journal of Applied Economic Sciences, 4(2), 222-235