Marketing and the Law

Olazábal, Ann Morales; Cava, Anita; Sacasas, R.

doi:10.1177/03079459994353

Cited by 1 publication

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“…At one time, Capital One Bank and Kmart entered into a co‐branding agreement to issue a common credit card and maintained their partnership over several years. However, 3 years after the co‐brand was introduced, things changed rapidly because of a major event: Kmart's financial situation deteriorated and the company went into bankruptcy (Olazábal, Cava, & Sacasas, ). Although financial analysts had foreseen this for some months, the situation became a critical event with the actual filing for bankruptcy because of the tremendous publicity associated with it.…”

Section: Introductionmentioning

confidence: 99%

What if something unexpected happens to my brand? Spillover effects from positive and negative events in a co‐branding partnership

Koschate‐Fischer

Hoyer²,

Wolframm

2019

Psychology and Marketing

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Brands sometimes enter into co‐branding agreements and major events can occur to one of the brands which can have either negative or positive consequences for the brands involved in the partnership. The current study investigates as yet unanswered research questions regarding whether and how positive and negative events happening to one brand in a co‐branding partnership affect the brand equities of the other brands in the partnership. The authors provide and test a new integrated attribution‐diagnosticity framework to explain the process that underlies the magnitude of these spillover effects. Findings show that while positive and negative event‐related spillover effects occur between the co‐brand and both parent brands, they were surprisingly absent between the parent brands. Further, the (a)symmetry of parent brand equity before the event influences the magnitude of event‐related spillover the parent brands receive from the co‐brand. Theoretical and practical implications of these findings are discussed.

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Section: Introductionmentioning

confidence: 99%