perceived quality and customer purchase intent of brand alliance:

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Perceived Quality and Customer Purchase Intent of Brand Alliance: The Co-Branding Strategy of L G and Prada Luxury Cell phone

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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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Page 1: Perceived Quality and Customer Purchase Intent of Brand Alliance:

Perceived Quality and Customer Purchase Intent of Brand Alliance:

The Co-Branding Strategy of LG and Prada Luxury Cell phone

Page 2: Perceived Quality and Customer Purchase Intent of Brand Alliance:

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)

Page 3: Perceived Quality and Customer Purchase Intent of Brand Alliance:

LG PRADA MOBILE

Page 4: Perceived Quality and Customer Purchase Intent of Brand Alliance:

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?

+

Page 5: Perceived Quality and Customer Purchase Intent of Brand Alliance:

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

Page 6: Perceived Quality and Customer Purchase Intent of Brand Alliance:

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

Page 7: Perceived Quality and Customer Purchase Intent of Brand Alliance:

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

Page 8: Perceived Quality and Customer Purchase Intent of Brand Alliance:

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

Page 9: Perceived Quality and Customer Purchase Intent of Brand Alliance:

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.

Page 10: Perceived Quality and Customer Purchase Intent of Brand Alliance:

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

Page 11: Perceived Quality and Customer Purchase Intent of Brand Alliance:

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

Page 12: Perceived Quality and Customer Purchase Intent of Brand Alliance:

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

Page 13: Perceived Quality and Customer Purchase Intent of Brand Alliance:

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

Page 14: Perceived Quality and Customer Purchase Intent of Brand Alliance:

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

Page 15: Perceived Quality and Customer Purchase Intent of Brand Alliance:

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.

Page 16: Perceived Quality and Customer Purchase Intent of Brand Alliance:

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

Page 17: Perceived Quality and Customer Purchase Intent of Brand Alliance:

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

Page 18: Perceived Quality and Customer Purchase Intent of Brand Alliance:

Conclusion-H1

• The LG-Prada’s co-branding cell phone has the higher perceived qulality more than the LG’s cell phone.

Page 19: Perceived Quality and Customer Purchase Intent of Brand Alliance:

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

Page 20: Perceived Quality and Customer Purchase Intent of Brand Alliance:

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

Page 21: Perceived Quality and Customer Purchase Intent of Brand Alliance:

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.

Page 22: Perceived Quality and Customer Purchase Intent of Brand Alliance:

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

Page 23: Perceived Quality and Customer Purchase Intent of Brand Alliance:

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

Page 24: Perceived Quality and Customer Purchase Intent of Brand Alliance:

Conclusion-H2

• The LG-Prada’s co-branding cell phone has the higher consumers’ purchase intent more than the LG’s cell phone.