Ingredient branding in industrial B2B2C chains: how corporate brands and sales value propositions drive co-branded equity

Abstract

In industrial markets, the equity of co-branded offerings hinges on how decision makers interpret alliances between corporate brands. When brand strength is asymmetric, it remains unclear which partner dominates equity formation and when sales value proposition framing adds value. This study investigates how corporate brand strength (strong vs. weak, for host and ingredient firms) and sales value proposition framing (utilitarian vs. symbolic) jointly shape product brand equity across B2B and B2C audiences. Drawing on signaling and information integration theories, we argue that equity formation is contingent on audience type, framing, and brand strength asymmetry. A 2 × 2 × 2 × 2 between-subjects experiment with 558 participants employed simulated ingredient co-branding scenarios in a B2B2C dairy context. Results show that strong host and ingredient brands enhance brand equity, with host brands exerting a systematically stronger influence. Weak host brands substantially depress brand equity, particularly among B2B respondents. Framing effects are contingent: utilitarian framing increases willingness to pay a price premium only when paired with strong host brands in B2B settings. The study advances industrial co-branding research by clarifying when corporate brand dominance and framing congruence drive co-branded product equity across B2B and B2C audiences, highlighting asymmetric brand strength as the primary coordination mechanism.