Negative spillover effects in brand cooperation

Published on Nov 1, 2014in Journal of Business Economics
· DOI :10.1007/s11573-014-0711-y
Steffen Herm4
Estimated H-index: 4
(Technical University of Berlin)
This research investigates negative spillover effects on brand trust and purchase intentions due to violations of implicit or explicit rules within brand cooperation (transgressions). In particular, this research examines a joint new product launch activity of a focal brand and a partner brand. Study 1, an experimental study with brand community members of the focal brand and different transgression scenarios, reveals fewer spillover effects on the focal brand when the partner brand is responsible for the transgression, and discovers more negative spillover effects on the partner brand when the focal brand causes the transgression. In other words, brand community members transfer the responsibility for the transgression to an external cause. Study 2 explores different forms of crisis communication in the context of a product launch delay and finds that a denial by the focal brand is more effective with respect to image restoration than a denial by the partner brand. However, when both brands deny responsibility at the same time, the denial negatively influences trust in both brands.
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