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Ingredient Branding
A special case of co-branding is ingredient branding, which involves creating
brand equity for marterials, components, parts, etc, that are necessary contained
within orther branded products (Mc Carthy & Norris, 1999; Noriss, 1992).
Carpenter et al. (1994) found that the inclusion of a branded attribute (e.g., ‘Alpine
Class’ fill for a down jacket) significantly impacted consumer choices even when
consumers were explicitly told that the attribute was not revelant to their choice;
subjects evidently inferred certain quality characteristics as a result of branded
ingredient. Brown & Carpenter (2000) offer a reason-based account for the trivial
attributes effect and show that the effect will depend on the choice context
involved. Finally, Broniarszk & Gershoff (2001) show that the effect of trivial
differentiation is more pronounced with strong brands.
Desai & Keller (2001) conducted a laboratory experiment to consider how
ingredient branding affected consumer acceptance of initial line extension, as well
as the ability of the brand to introduce future category extensions. Two particular
types of line extensions, defined as brand expansion, were studied:
1) slot filler expansions, where the level of one existing product attribite
changed (e.g., a new type of scent in Tide detergent); and
2) new attribute expansions, where an entiredly new attribute or characteristic
was added to the product (e.g., cough relief liquid added to Life Savers
candy).
2 types of ingredient brading strategies were examined by branding the target
attribute ingredient for the brand expansion with either a new name as a self-
branded ingredient (e.g., Tide with its own EverFresh scented bath soap) or an
established, well-respected name as a co-branded ingredient (e.g., Tide with Irish
Spring scented bath soap). The results indicated that with slot filler expansions,
although a co-branded ingredient facilitated initial expansion acceptance, a self-
branded ingredient led to more favorable subsequent extension evaluations of both
the initial expansion and subsequent extension.
Finally, Venkatesh & Mahajan (1997) derived an analytical model based on
bunding and reservation price notion to help formulate optimal pricing and partner
selection decisions for branded components. In an experimental application in the
context of a university computer store selling ‘486 class’ laptop computers, they
showed that at the bundle level an all-brand Compaq PC with Intel 486 commaned
a clear price premium over other alternatives. The relative brand ‘strength’of the
Intel brand, however, was shown to be stronger in some sense than that of the
Compaq brand.