Investigating the Effects of Price and Brand Leveraging Strategy on Consumer’s Behavioral Intention (Case Study: Daily Food Products)

Marketers often use a credible and familiar brand name on their products to highlight the unobservable quality and important attributes of the products. Drawing on signaling theory, brand leveraging strategy is the presence of credible and familiar brand along with the primary brand on the product. Conceptualizing from the co-branding literature, brand leveraging strategy enhances consumer's evaluations of product quality, perceptions of value and their willingness to buy. This study examines how the effects of price and combining two brand names influence consumer's evaluation of a product. The study findings offer empirical evidence that applying of brand leveraging strategy results in higher perceived quality. Product cues such as (brand names and price) must be positively consistent to gain the highest perceived quality from consumers. This study provides some important implications for marketers attempting to implement brand leveraging strategy, and for consumers to understand the presence of a credible and familiar brand name as signal of an unobservable product quality and important attributes.