Using conjoint analysis to assess the relative values of 'host' and 'guest' brands in multi-brand products

Date of publication: June 15, 1992

Abstract:

The paradigmatic concept of a brand is a name standing for a "virtual individual". Within this traditional approach, a multi-brand product carrying more than one brand is an antinomy, standing against the idea that a loyal consumer can trust the brand without further investigation of the product. All the same, multi-brand products exist. In many cases a "guest" brand is featured on a "host" brand in order to communicate specific aspects or in order to support a brand extension. Whenever a manufacturer considers using a "guest" brand on one of his products, an objective and mutually agreed assessment of a brand's value gets pivotal. This paper suggest to use Conjoint Analysis as a "lean" and straightforward approach to estimate the value of a "guest" brand relative to the "host" brand and to a price premium. The methodology is put forward using a research project on the NutraSweet logo in the French table top sweetener market.

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