OEM’s value through ingredient co-branding strategy: a case in the energy industry

Purpose of the paper: despite the increasing popularity of ingredient branding strategies, little is known about the industrial customers’ perception of ingredient co-branding strategies in industrial contexts. The purpose of this study is to investigate this issue, which together with brand image and responsiveness can be considered antecedents of industrial customers’ loyalty. Methodology: the results are drawn from an e-mail survey sent by the authors to a sample of Italian customers of a multinational ingredient supplier in the electric-energy industry. A factorial analysis and a linear regression are implemented to isolate the perceived co-branding value and to identify its impact on the customers’ loyalty. Findings: the perceived co-branding value is a unique construct that - together with brand image and responsiveness - strongly predicts the loyalty for all of the ingredient supplier’s customers. Originality and limits: this paper contributes to the understanding of the role of ingredient co-branding in the buyer-seller relationship in an industrial context. Nevertheless, the research presents some limits: it is conducted in one industry and in one country only. Thus, caution is required before generalizing the results. Practical implications: the findings suggest that co-branding strategies are effective in reinforcing buyer-seller relationships.