Leveraging Computational Models to Analyze the Impact of Co-Branding on Brand Equity and Consumer Loyalty Across Generations

Abstract

This study examines the effect of co-branding on brand equity and consumer loyalty in the Indonesian cosmetics sector, specifically analyzing the partnership between Mizzu, a cosmetics brand, and Khong Guan, a food brand, on the dimensions of brand experience sensory, emotional, behavioral, and intellectual and its subsequent implications for brand equity components, such as brand awareness, perceived quality, and brand loyalty, among Generation Y and Generation Z consumers. A quantitative research design, using Partial Least Squares Structural Equation Modeling (PLS-SEM) and Multi-group Quantitative Analysis (MGA), was applied to analyze responses from 757 participants in Jakarta. The results show that Generation Y values emotional connections and product quality in fostering brand loyalty, while Generation Z places greater emphasis on creativity and originality in co-branded products. The findings suggest that perceived value plays a critical role in linking brand experience to brand loyalty for both generations. In addition, the collaboration of management systems among the associated brands improves operational effectiveness, guaranteeing uniform product quality and delivering a lasting competitive edge. These outcomes emphasize the power of co-branding as a strategic approach to boost brand value and propel organizational achievements. This study provides important perspectives for marketers and brand managers to customize co-branding tactics that connect with various generational groups.