Abstract

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.

This work is licensed under a Creative Commons Attribution 4.0 License.