Business Commons^™

Examining The Impact Of Co-Branding Service Failures On Consumer Evaluations, Chia-Lin Lee

Asia Marketing Journal

Researchers do not fully understand consumers’ responses to negative co-branding events; thus, they report inconsistent evidence regarding the negative impact on the partnering brands. Our research bridges a gap in this research stream, and answers an important question: When a service failure occurs, could the two different models of consumers’ brand schema change affect their negative perception of each brand partner? By using a theoretical and mathematical modeling approach, we offer two propositions. The first proposition shows that, under consumers’ book-keeping cognitive process, the negative spillover effect occurs for both brands. The second proposition argues that, when the sub-typing model …