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? 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 Perceived Quality 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 co-branding 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 No Co-Branding Perceived Quality Purchase Intent

Methodology(2) Perceived quality Purchase intent 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 Sample source 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 co-branding Notes Sample size 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

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 Reliability 1.2632 1.4049 4.80 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 Durable 4.2105 3.4561

Discussion-H1 The line chart of the perceived quality scores

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 57/60 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 <0.0001 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 Try 1.4211 1.4104 5.38 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.

Purchase intent scores 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

Conclusion-H2 The LG-Prada’s co-branding cell phone has the higher consumers’ purchase intent more than the LG’s cell phone.