The impact of co-branding on post-purchase behaviors in family restaurants

Abstract

Co-branding is increasingly becoming a popular strategy in the hospitality industry. In general, co-branding can be defined as several brands collaborating in technology development, marketing, or production while keeping their independence as separate business entities (Stewart, 1995. Marketing News 29(4), 5). This study is designed to examine the effects of co-branding cards on post-purchase behaviors such as customer loyalty and purchase patterns in family restaurants in Korea. This study further investigates how these effects are different by types of family restaurants (i.e., full-service versus buffet). The result indicates that co-branding cards can be an effective marketing tool that helps family restaurants to build both behavioral and attitudinal customer loyalty. It is also found that although co-branding cards may be a successful strategy to encourage more frequent visits, the strategy may not always lead to a higher profit margin per customer.