When will a brand scandal spill over, and how should competitors respond?

Deskripsi

This research examines the spillover of a brand scandal within a product category. The authors present a framework that enables prediction of, for example, when a scandal associated with Nike might be expected to spill over and affect perceptions of a competitor, such as Reebok. For a scandal to spill over, consumers must activate a spillover target as they process scandal information. Activation of a competitor is facilitated when the other brand is strongly linked to the scandalized company, perhaps through a history of direct competition. In addition, consumers must view the scandal as diagnostic for the category and/or the competitor. Factors that may promote diagnosticity include the typicality of a scandalized company and contextual cues, such as advertisements, that focus attention on relationships among brands. A noteworthy finding is that overall similarity does not support adequate diagnosticity to create spillover. This research also provides insight into when and how issuing a denial may benefit a competitor in relation to a scandalized company.Printed Journal