Co-branded services: perceived benefits and involvement of co-branded credit cards

Jillian Farquhar, Stephen Wang

    Research output: Contribution to journalArticlepeer-review


    Purpose – The purpose of this paper is to further the consumer services theory in financial services marketing by examining how perceived benefits influence consumer intention-to-use a co-branded credit card and further how intention-to-use is moderated by involvement.
    Design/methodology/approach – A conceptual model is developed and tested. A convenience sample of users of a co-branded credit card was surveyed. The responses were analyzed using structural equation modeling.
    Findings – Results show a strong association between perceived benefits and co-brand equity and between co-brand equity and co-brand preference, as well as between perceived benefits and intention-to-use. The research also identifies four perceived benefits of a co-branded credit card. They also show that highly involved consumers are less affected by perceived benefits than their low involvement counterparts.
    Research limitations/implications – Further research might consider co-branding across categories of
    services and explore the ambivalent results of co-brand preference in the mode. This research is limited by the
    use of a convenience sample and a cross-sectional survey. A probability sample and a longitudinal element to
    the study would have added weight to the study’s findings.
    Practical implications – Managers with co-branding responsibilities should focus on improving the
    perceived benefits of co-branded credit cards.
    Social implications – This study has a wider application to understanding how co-branding services may
    be applied in not-for-profit situations, specifically affinity card co-branding, thus generating greater revenue
    for charitable and social concerns.
    Originality/value – This research advances research in the financial services consumer theory by
    demonstrating a strong association between perceived benefits and intention-to-use a co-branded credit card,
    distinguishing between the behavioral traits of consumers with high and low levels of involvement. It thus
    advances the consumer theory in co-branding.
    Original languageEnglish
    Pages (from-to)969-987
    Number of pages19
    JournalInternational Journal of Bank Marketing
    Issue number5
    Publication statusPublished - 4 Jun 2018


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