The implications of platform sharing on brand value

Purpose – The paper seeks to examine empirically the potential dilution and enhancement of brands that share product platforms with other brands.Design/methodology/approach – Study 1 uses two real platform‐sharing examples from the automobile and consumer electronics industries in an experimental setting. Study 2 uses conjoint analysis in the same two industries to study the impact of platform‐sharing on preference and willingness to pay for a unique brand.Findings – Study 1 finds that sharing a platform with an upscale brand is preferable to sharing with a downscale brand, although results are mixed on whether a unique‐to‐brand platform is preferred to sharing with an upscale brand. Study 2 finds that unique‐to‐brand platforms are preferred to any type of platform sharing, and calculates that this preference is worth about 6‐10 per cent of the product's retail price.Research limitations/implications – Both studies use student samples, although all product classes and brands tested are popular with this d...

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