Research On The Spillover Effect Of Multi-brand Strategy

With the rapid development of China’s economy,it not only increases China’s residents’ consumption level,but also promotes the gradual prosperity of China’s market.For enterprises,this change means the new development opportunities,the new competition and the new challenges.Besides keeping up with market changes and adjusting brand strategy in time,enterprises also need to stimulate consumers to create more financial and economic value through active marketing.Among many brand strategies,the multi-brand strategy created by P & G(Procter & Gamble Company)was imitated by various brands for its high market share and high yield.However,in the face of the rapidly developing Chinese market,P & G’s multi-brand strategy has also encountered new challenges and ushered in new changes.Therefore,taking P & G as an example,this thesis deeply explores the spillover effect of parent brand trust on new brand purchase intention in multi-brand strategy,and establishes two spillover effect paths mediated by perceived quality and perceived risk,which enriches the research on the positive spillover effect of multi-brand strategy.Based on the relevant theories of spillover effect,this thesis establishes the spillover effect model of parent brand trust on new brand purchase intention.Under the multi-brand strategy,consumers’ parent brand trust will spill over to consumers’ purchase intention of the new brand through consumers’ perceived quality and perceived risk of the new brands.At the same time,consumers’ use experience of the parent brand and their own innovation will affect the result of the spillover effect.After analyzing 306 valid questionnaires by using SPSS 25.0 and AMOS 22.0,the research hypotheses of this thesis are confirmed.Consumers’ P & G use experience can affect their trust in P & G,and overflow to P & G’s new brand after consumers obtain relevant brand information.It can affect consumers’ purchase intention of the new brand by improving the perceived quality and reducing the perceived risk of the new brand.In the process from perceived risk to purchase intention,consumers’ innovation plays a regulatory role.Under high perceived risk,highly innovative consumers’ purchase intentions are stronger than others.The research conclusion based on the positive spillover effect of P & G’s multibrand strategy provides a feasible brand strategy adjustment direction for P & G and enterprises adopting the similar multi-brand strategy.On the one hand,the parent brand trust can overflow to the new brand by transmitting positive signals and enhance consumers’ purchase intention.Therefore,when arranges new brands to enter the market,properly strengthening the association with the parent brand can reduce the entry barriers of new brands and win the favor of consumers faster.On the other hand,the use experience of consumer P & G and the consumers’ innovation will affect the spillover effect.Therefore,P & G can appropriately strengthen the positive connection between sub brands and parent brand,and formulate different marketing plans for different types of consumers.In short,in the current operation process,enterprises can better respond to market changes and improve the overall competitiveness of the brand by strengthening quality management,innovating marketing methods and segmenting the target market.