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

Jillian Farquhar, Stephen Wang

Research output: Contribution to journalArticle

Abstract

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
Article numberhttps://doi.org/10.1108/IJBM-05-2017-0098
Pages (from-to)969-987
Number of pages19
JournalInternational Journal of Bank Marketing
Volume36
Issue number5
DOIs
Publication statusPublished - 4 Jun 2018

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Perceived benefits
Credit cards
Co-branding
Intention to use
Consumer theory
Financial services
Brand equity
Brand preference
Consumer services
Services marketing
Managers
Structural equation modeling
Conceptual model
Responsibility
Design methodology

Cite this

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title = "Co-branded services: perceived benefits and involvement of co-branded credit cards",
abstract = "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 ofservices and explore the ambivalent results of co-brand preference in the mode. This research is limited by theuse of a convenience sample and a cross-sectional survey. A probability sample and a longitudinal element tothe study would have added weight to the study’s findings.Practical implications – Managers with co-branding responsibilities should focus on improving theperceived benefits of co-branded credit cards.Social implications – This study has a wider application to understanding how co-branding services maybe applied in not-for-profit situations, specifically affinity card co-branding, thus generating greater revenuefor charitable and social concerns.Originality/value – This research advances research in the financial services consumer theory bydemonstrating 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 thusadvances the consumer theory in co-branding.",
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Co-branded services: perceived benefits and involvement of co-branded credit cards. / Farquhar, Jillian; Wang, Stephen.

In: International Journal of Bank Marketing, Vol. 36, No. 5, https://doi.org/10.1108/IJBM-05-2017-0098, 04.06.2018, p. 969-987.

Research output: Contribution to journalArticle

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