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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- Park, C Whan & Milberg, Sandra & Lawson, Robert, 1991. " Evaluation of Brand Extensions: The Role of Product Feature Similarity and Brand Concept Consistency," Journal of Consumer Research, University of Chicago Press, vol. 18(2), pages 185-93, September.
- Barone, Michael J & Miniard, Paul W & Romeo, Jean B, 2000. " The Influence of Positive Mood on Brand Extension Evaluations," Journal of Consumer Research, University of Chicago Press, vol. 26(4), pages 386-400, March.
- Sheinin, Daniel A. & Schmitt, Bernd H., 1994. "Extending brands with new product concepts: The role of category attribute congruity, brand affect, and brand breadth," Journal of Business Research, Elsevier, vol. 31(1), pages 1-10, September.
- Dens, Nathalie & De Pelsmacker, Patrick, 2010. "Attitudes toward the extension and parent brand in response to extension advertising," Journal of Business Research, Elsevier, vol. 63(11), pages 1237-1244, November.
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