The Effect of Brand Names Union on the Profitability of Institutions, Case Study: Sony Ericson Mobile Phone

Abstract

In todays competitive markets, the financial risks and marketing related to the introduction of new products under the unfamiliar brand names together with the long process of forming consumers favorable attitudes towards the new brand names, has pushed many of companies for alliances and joint investments with partners in line with them. While using such strategies without studying them can bring about irreparable losses for companies, the present paper attempts to study the related researches and thus conduct a field study on Sony Ericson brand name in order to evaluate the application effect of brand union strategy on the profitability of institutions. The population of this study is the students having Sony Ericson mobile phones in the city of Yazd. The results of the study indicates that brand union strategy is an appropriate study for positioning a new product in the market and is considered as an competitive advantage in the market which leads to the improvement of the consumer’s attitude towards the product, however, it does not lead to the purchasing of the product and the profitability of the business enterprise by increasing the probability of purchasing of goods by the consumer.

DOI: 10.5901/mjss.2016.v7n3s3p306