The Relationship between Cobranding and the Brand Equity

Abstract

Co-branding has been a beloved strategy for many firms in various industries From Coca-Cola cobranded with Nutra Sweet Lay’s co-branded with KC Masterpiece to Nike co-branded with Apple Co-branding can not only help firms reduce risks when entering an unknown new market but also reduce the marketing and advertising expenses From the acknowledge from the partner co-branding can help firm build a stronger brand which leads to firm future cash flow I collect co-branding events in United States from 2009 to 2018 from Product Launch Analytics I exam whether different level of brand equity would affect the abnormal returns in a co-branding agreement The result shows that when both high brand equity brands cobrand together both will have positive abnormal returns However in the case of one high brand equity cobrands with one low brand equity and two low brand equity brands cobrand together both brands would have negative abnormal returns I also exam the regression the result shows that the combination of two high brand equity brands one low brand equity brand cobrand with one high brand equity and two low brand equity brands positively increase with the abnormal returns

Date of Award	2019
Original language	English
Supervisor	Shao-Chi Chang (Supervisor)