The impact of different fit dimensions on spillover effects in brand alliances

Brand alliances represent a popular business strategy in many industries, because firms hope to evoke positive consumer evaluations of both the alliance’s product and the partner brands. However, extant research offers mixed findings regarding the effects of a brand alliance on its partner brands (i.e., spillover effects). In response, this study separates spillover effects into the effects of the alliance product on the partner brands (brand alliance effects) and the effects between partner brands (brand contrast effects), while also noting the potential moderating impact of perceived attitude- and product-based fit between partner brands on resulting spillover effects. Two experimental studies consistently reveal the existence of brand contrast effects; furthermore, the partner brand’s attitude-based fit reduces undesired brand contrast effects and positively moderates spillover effects in brand alliances, whereas product-based fit does not. Therefore, a third study identifies relevant drivers of partner brand’s attitude-based fit for different brand alliances (i.e., co-branding, ingredient branding, and joint advertising). The findings have notable implications for the design and management of brand alliances.