Crazy in Love with a Tech Giant? Exploring Consumer Perceptions of Digitally-Driven Brand Alliances

JOURNAL OF TECHNOLOGY AND INNOVATION MANAGEMENT 2019; 3(1): 1–9

9 Pages Posted: 4 Apr 2019

See all articles by Timm Wagner

Timm Wagner

Friedrich-Alexander-Universität Erlangen-Nuremberg (FAU)

Tobias Eismann

Friedrich-Alexander-Universität Erlangen-Nürnberg

Kai-Ingo Voigt

University of Erlangen-Nuremberg

Date Written: March 13, 2019

Abstract

In many industries, digitalization has considerably changed the skills and capabilities that are necessary for success. Since traditional industry incumbents often lack these capabilities, they have started to enter strategic partnerships with ‘tech giants’ (big technology companies) that possess wide-ranging digital capabilities. It is not yet clear how these digitally-driven alliances influence consumers’ brand perceptions of the traditional industry incumbents. In this phenomenon-driven research, we present the findings of an experimental study (n = 912) conducted in the context of the automotive industry, where car manufacturers increasingly use Apple (‘CarPlay’) and Google (‘Android Auto’) solutions for their infotainment systems. Our results show different effects depending on the brand character of the traditional industry incumbent. In particular, alliances between premium brands and digital companies lead to negative consumer responses. However, non-premium brands can benefit from these partnerships, as we found favourable consumer perceptions. Our research emphasizes the importance of the careful consideration of digitally-driven brand alliances that are visible to consumers, because they can lead to both favourable and undesirable consumer responses.

Keywords: digitalization, brand alliances, consumer perception, tech giants, premium brands

Suggested Citation

Wagner, Timm and Eismann, Tobias and Voigt, Kai-Ingo, Crazy in Love with a Tech Giant? Exploring Consumer Perceptions of Digitally-Driven Brand Alliances (March 13, 2019). JOURNAL OF TECHNOLOGY AND INNOVATION MANAGEMENT 2019; 3(1): 1–9, Available at SSRN: https://ssrn.com/abstract=3351743

Timm Wagner (Contact Author)

Friedrich-Alexander-Universität Erlangen-Nuremberg (FAU) ( email )

Lange Gasse 20
Nürnberg, 90403
Germany

Tobias Eismann

Friedrich-Alexander-Universität Erlangen-Nürnberg ( email )

Lange Gasse 20
Nürnberg, 90409
Germany

HOME PAGE: http://www.industry.rw.fau.de

Kai-Ingo Voigt

University of Erlangen-Nuremberg ( email )

Schloßplatz 4
Erlangen, DE Bavaria 91054
Germany

HOME PAGE: http://www.industriebetriebslehre.de

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
77
Abstract Views
682
Rank
563,673
PlumX Metrics