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Guilt by association: Heuristic risks for foreign brands during a product-harm crisis in China

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  • Gao, Hongzhi
  • Knight, John G.
  • Zhang, Hongxia
  • Mather, Damien

Abstract

Critical for international marketers in volatile markets is understanding of factors that influence consumer responses during a product-harm crisis. Applying social psychology concepts of heuristic judgments and attribution theory, the authors study mistrust of non-contaminated but heuristically-associated foreign brands during the 2008 Chinese milk contamination crisis. Shared brand identity and investment or management links between a locally made product brand and a foreign imported brand expose the foreign brand to guilt-by-association (GBA) effects. Judgments regarding stability of the underlying cause of the domestic crisis moderate the transference of blame to foreign brands.

Suggested Citation

  • Gao, Hongzhi & Knight, John G. & Zhang, Hongxia & Mather, Damien, 2013. "Guilt by association: Heuristic risks for foreign brands during a product-harm crisis in China," Journal of Business Research, Elsevier, vol. 66(8), pages 1044-1051.
    • Handle: RePEc:eee:jbrese:v:66:y:2013:i:8:p:1044-1051
    DOI: 10.1016/j.jbusres.2011.12.029
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