EXPLORING THE EFFECT OF INGREDIENT BRANDING ON

CONSUMERS PURCHASE DECISIONS FROM CONSUMERS

PERSPECTIVE

INTRODUCTION:
Ingredient branding is one of many brand tactics used in marketing to offer customers a point
of uniqueness. Because it has the ability to leverage the brand equity of the brands adopting
it, if done properly, ingredient branding, one of the co-branding methods, is growing in
popularity in the intensely competitive market. One of the popular ways of collaborating with
other partners is through ingredient branding. Utilizing the potential synergy of two or more
brands that share a shared brand area is the primary objective of ingredient branding. In the
case of durable goods, ingredient branding helps people establish positive sentiments
toward the finished product. (e.g., Dalman and Puranam, 2017; Eom et al., 2015; Moon and
Sprott, 2016).
Whether ingredient branding will promote the end offering and generate demand are just a
few of the factors that marketers often carefully assess when making a strategic decision. d
(Dalman and Puranam, 2017). The ingredient branding strategy has enticed a number of
businesses to engage with it for products ranging from durables to fast-moving consumer
goods because it promises to add value to a product when all the prerequisites are satisfied.
The ingredient brand changes a characteristic already present in the host category, frequently
to assist the host brand in enhancing perceptions of performance on that characteristic. For
instance, Kellogg's Pop-Tarts could enhance the perception of how well their existing fruit
filling performs. Even if increased product performance in the host category is crucial, it's
also important to consider whether the host brand is making the most of the ingredient's
potential.
This research describes the consumer's mental process when evaluating the various brands in
an alliance (Helmig et al., 2007C. Paydas Turan Journal of Retailing and Consumer Services
63 (2021) 102690 3 Kalafatis et al., 2016; Norman, 2012; Simonin and Ruth, 1998,
Swaminathan et al., 2012). Several reasons motivate suppliers to develop IC brands including
higher margins, more stable demand, better mutual cooperation with OEMs, longer
relationships, shared cost of development and promotion, shared risk and as an entry barrier
for potential competitors (Erevelles et al., 2008; Ghosh and John, 2009; Norris, 1992; Norris,
1993). The positive impact of ingredient branding on brand image, and loyalty has found
support in previous research. When a consumer goods brand is integrated into a service,
consumers are more likely to pay for the branded item due to the elevated perception of
quality.
Previous research finds that when relevant success factors of cobranding are met (i.e., brand
image fit between the partner brands, positive attitude towards partner brands,
complementarity between core attributes of the partners), the ingredient branding strategy can
stimulate demand by triggering consumers’ attention through differentiation via the
ingredient (e.g., Giakoumaki et al., 2016; Heo and Hyun, 2015; Panwar and Khan, 2020) and
positively impact consumers’ purchase intention (e.g., Helm and Ozergin, 2015; Moon and
Sprott, 2016).

Background of The Study

Problem Statement
There are a lot of literature available on ingredient branding and customer purchase decision
but not a lot of research has been conducted on exploring why buyers don't necessarily look
for "ingredient Brands" when they shop. BesidesThe host brand may suffer if the partner
brand is chosen improperly or it may even become too dominant. (Besharat and Langan,
2014). Whether brand and category extensions have any additional feedback impacts on the
ingredient brand and consumer purchases.