News
A company's good reputation can be a bad thing Consumers expect a lot from high-equity brands such as Disney or Apple. When such brands fail us - perhaps by providing a product that doesn`t work or service that is sub-par - we may be especially disappointed. Our evaluations of formerly high-stature brands may even dip below those of low-equity brands. However, a new study from the Journal of Consumer Research finds that this drop in esteem may not always be inevitable after a failure. The study also reveals that, surprisingly, a high-equity brand fares better when the failure is severe.
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