Leveraging reputation for product innovation through strategic co-branding

In this chapter, we describe how the cooperation between an original equipment manufacturer and the supplier possibly influences consumers' product perception. In particular, this chapter focuses on joint brand appearance of the product and explains under which conditions the reputation of an innovative supplier affects the decision-making of consumers. Building on ingredient branding literature, we develop a model explaining the effect of the appearance of the manufacturer and the supplier on the final product as cue, influencing the consumers' quality judgment. The chapter contributes to a new and ongoing discussion on the management and strategic potential of ingredient branding offerings, their potential application fields with regard to practical examples, as well as the associated limits and risks.