Management Review

›› 2016, Vol. 28 ›› Issue (11): 129-139.

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The Influence of Enterprise Negative Events on Brand Extension Evaluation: The Mediating Effect of Perceived Sense of Betrayal

Li Yalin1, Jing Fengjie2   

  1. 1. School of Business Administration, Hubei University of Economics, Wuhan 430205;
    2. School of Business, East China University of Science and Technology, Shanghai 200237
  • Received:2014-06-16 Online:2016-11-28 Published:2016-11-23

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Abstract:

Given the increasing occurrence of enterprise negative events, the paper explores how different types of enterprise negative e-vents affect consumers' evaluations of brand extension through the mediator variable of the consumers' perceived sense of betrayal as well as the regulation effect of the psychological distance and brand fit. The research finds that different type of negative events has quite different influence on consumers' evaluations of brand extension through the mediator variable of the consumers' perceived sense of be-trayal. While a subsequent study finds that the psychological distance and brand fit have regulating effects, indicating that closer psycho-logical distance leads to higher perceived sense of betrayal. But the brand fit has some protective effect and it reduces the effects of per-ceived sense of betrayal on brand extension evaluation, i.e. the lower the brand fit is, the smaller effect the perceived sense of betrayal will have on brand extension evaluation.

Key words: negative events, brand extension evaluation, perceived sense of betrayal