An Exploratory Study Into Delivery and Payment Choice Restriction

An Exploratory Study Into Delivery and Payment Choice Restriction

Kevin J. Shanahan (New Mexico State University, USA), Barbara Ross-Wooldridge (the University of Texas at Tyler, Usa) and Charles M. Hermans (Missouri State University, USA)
Copyright: © 2009 |Pages: 13
DOI: 10.4018/joeuc.2009010104
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Abstract

We first measure attitudes toward a product and attitudes toward product quality when an unknown brand is associated with a well-known and trusted co-brand in the form of payment and delivery options; employing a classic co-branding strategy. Theory suggests that association with a trusted brand should lead to improved positive assessment of an unknown brand. Results suggest that the popular belief that trusted brands improve respondents’ assessments of unknown brands through a co-branding strategy may not be supported when there is a restriction on choice of payment and delivery options. That is, when including only a limited number of co-brands, brand associations may give the perception of restricted choice, leading to a lessened level of trust in the co-brand. We then repeat the study using a known branded product and known branded delivery and payment methods. Results show no difference in consumer perceptions between no co-brand and a full complement of co-brands. However, a restricted set of payment and delivery options leads to a more negative attitude toward the product and product quality.

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