Vulnerability of global brands to negative feedback effects
AbstractGoing global is a successful strategy to leverage a brand's equity, in part, because global is synonymous of quality for consumers. This research examines the impact of competitor brand familiarity on the quality perceptions of global brands in Chile when the brand extends into new product categories. The results indicate that there is a negative impact on the quality perceptions of brand extensions when an extension competes with well-known and well-liked competitor brands. However, brand extension quality beliefs seem to produce negative feedback effects on parent brand quality beliefs only for narrowly extended parent brands but not for broadly extended ones.
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Bibliographic InfoArticle provided by Elsevier in its journal Journal of Business Research.
Volume (Year): 61 (2008)
Issue (Month): 6 (June)
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Web page: http://www.elsevier.com/locate/jbusres
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