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
Growth Rate (%)
The Growth Rate of Global Mobile Phone
90
80
70
60
50
40
30
20
10
0
Total market
Low-end(under $100)
High-end(over $350)
2004
2005
2006
Year
2007
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
technology, 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
purchase 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
design obtains the research results. It pointed out when execute cobranding 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
Perceived
Quality
No Co-Branding
Purchase
Intent
Methodology(2)
• Perceived quality
– Use the five dimensions in the research of Dodds, Monroe&
Grewal(1991) method (faith, quality, manufacture technology,
reliability, durability)
• Purchase intent
– Use the adjusted scale sheet developed by Mackenzie(1986) to measure
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 cobranding
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
P-value
<0.0001
df=568
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
6
5.2105
5.2456
5
4.1579
4.2105
4
Score
5.2632
4
4.0175
3.8772
4
3.4561
3
Co-branding
2
No co-branding
1
0
Confidence
Function
Quality
Purchase Intent
Reliability
Durable
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
P-value
<0.0001
df=454
Highly
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
Score
Line Chart
7
6
5
4
3
2
1
0
5.3684
5.0351
5.2456
3.3333
3.8947
Understand
3.5439
Like
3.8246
Try
Purchase Intent
3.2632
Purchase
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.