Finnish Design Brand Collaborations: Testing the Effects of Brand Familiarity on Consumers’ Purchase Intention

The aim of this thesis was to research whether Finnish design brand collaborations can work as an effective brand strategy for companies’ economic growth. To study this, a 2x3 between-subjects experimental research design was utilised to measure whether Finnish design brand collaborations and brand familiarity have an effect on consumers’ purchase intention. This thesis addressed the research question: How does the degree of a collaboration (yes or no) between Finnish design brands and the level of brand familiarity (high, low, or none) impact consumers' purchase intention? To answer this question, three hypotheses were formed: H1 (A brand collaboration between Finnish design brands has a more positive effect on purchase intention compared to when there is no collaboration), H2 (High brand familiarity has a more positive effect on purchase intention than low or no brand familiarity), and H3 (A brand collaboration has a stronger positive effect on purchase intention for consumers with high brand familiarity compared to those with low or no brand familiarity). Moreover, H2 needed to be divided into a sub-hypothesis H2a (Low brand familiarity has a more positive effect on purchase intention than no brand familiarity). The hypotheses were tested through a two-way ANOVA. H1 was rejected, meaning brand collaborations were not found to have a more significant effect on purchase intention compared to the absence of a collaboration in this context. Contrary, H2 was partly accepted. High brand familiarity had a more significant effect on purchase intention compared to no brand familiarity. Low brand familiarity had no significant effects in this context. Finally, H3 was accepted. Brand collaborations have a stronger positive effect on purchase intention for consumers with high brand familiarity compared to those with low or no brand familiarity in an online shopping situation. Thus, in line with previous research, brand collaborations can be effective brand strategies for growth if executed well. As collaborations seem to be particularly effective for established audiences, brands leveraging collaborations need to mind consumers’ brand familiarity levels when aiming to influence their purchase intention.