Abstract

The paper summarizes the main results of two studies, focused on the contribution of co-branding to the success of a brand extension strategy. Among the risks of brand extension, there is also the one to stimulate a reaction of counterextension by competitors. Previous research showed that co-branding can reduce this risk. Starting form this evidence, the first study analyzes how product fit and brand fit of a cobranded extension may influence the consumers evaluation of counterextension. As for brand extension, research on the success of new co-branded products showed the importance of perceptual fit, between both product categories (product fit) and the images of the brands involved in the agreement (brand fit or image congruity). Other aspects require, however, a deeper evaluation. In this line of research, the second study investigates the impact of a particular feature of the hosting brand: the dominance, as intensity of the association between that brand and its original product category.