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Vulnerability of global brands to negative feedback effects

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  • Milberg, Sandra J.
  • Sinn, Francisca

Abstract

Going 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.

Suggested Citation

  • Milberg, Sandra J. & Sinn, Francisca, 2008. "Vulnerability of global brands to negative feedback effects," Journal of Business Research, Elsevier, vol. 61(6), pages 684-690, June.
    • Handle: RePEc:eee:jbrese:v:61:y:2008:i:6:p:684-690
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    References listed on IDEAS

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    1. Barone, Michael J & Miniard, Paul W & Romeo, Jean B, 2000. "The Influence of Positive Mood on Brand Extension Evaluations," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 26(4), pages 386-400, March.
    2. 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.
    3. Zhang, Shi & Sood, Sanjay, 2002. ""Deep" and "Surface" Cues: Brand Extension Evaluations by Children and Adults," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 29(1), pages 129-141, June.
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    Cited by:

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    3. Farías, Pablo, 2015. "Determinantes do sucesso de marcas globais e locais na América Latina," RAE - Revista de Administração de Empresas, FGV-EAESP Escola de Administração de Empresas de São Paulo (Brazil), vol. 55(5), September.
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    5. Falana, Wuraola Oluwabukola & Aspara, Jaakko & Frösén, Johanna, 2024. "The impact of Janus fit brand extensions on perceived brand innovativeness," Journal of Business Research, Elsevier, vol. 179(C).
    6. Adedayo Akeem Musari & Mofoluwake Folasayo Ayo, 2019. "Product Branding on the Effectiveness and Performance of Manufacturing Industry," Business Management and Strategy, Macrothink Institute, vol. 10(2), pages 181-198, December.
    7. Celedon, Paulina & Milberg, Sandra & Sinn, Francisca, 2013. "Attraction and superiority effects in the Chilean marketplace: Do they exist with real brands?," Journal of Business Research, Elsevier, vol. 66(10), pages 1780-1786.
    8. 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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