Thread-lightly: Effects of Co-Branding between Luxury and Retail Fashion Firms.

Abstract of MSc Business Administration thesis

In the last decade, changes in the consumer landscape of the fashion industry have prompted retail and luxury fashion houses to embark on co-branding ventures that brought different levels of success. This branding strategy capitalizes from aspects of the individual brands to be transferred to the collaboration and back. Nevertheless, there are factors that can impact this strategy: From issues of brand fit and how consumers assess brand cohesion, to the type of fashion consumer and how they signal their identity through brand prominence. This MSc Thesis explores consumer perception of co-branded products by means of a 3x2 online experiment, investigating (i) the direct effects of brand fit and brand prominence on product quality and purchase intention after being presented with a fictitious collaboration between a luxury and a retail (fast) fashion brand, and (ii) the moderating effects of prior brand reputation and luxury consumer segmentation on that relationship. A mix of ANOVA, MANCOVA, and PROCESS Model 2 Regression analyses were used to analyse the responses (N=564) that were randomly assigned to one of the 6 conditions through an experimental survey administered via Qualtrics. Results showcased a significant direct impact of brand fit on perceptions of product quality, and of consumer segmentation on purchase intention. Moreover, this paper showed the impact that prior brand reputation, gender and generational differences have in the assessment of perceived quality and purchase intention. No significant results were found considering brand prominence and moderation effects. This research concludes that co-branded products impact consumer perceptions of quality and purchase intention depending on brand fit, prior brand reputation, generational and segmentation characteristics of consumers, while brand prominence does not influence perceptions greatly, which poses implications for future research and managerial knowledge.

Keywords: co-branding, brand fit, brand prominence, luxury consumer segmentation, brand equity, purchase intention, perceived quality

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