A negative spillover due to a firm’s product-harm crisis has attracted significant attention of marketing researchers owing to its devastating and irrecoverable damage, once occurred. While extensive research has been undertaken on this topic, studi...
A negative spillover due to a firm’s product-harm crisis has attracted significant attention of marketing researchers owing to its devastating and irrecoverable damage, once occurred. While extensive research has been undertaken on this topic, studies concerning spillovers across competing brands from different companies are relatively scant. Drawing upon the self-construal theory, we propose that a spillover effect across competing brands from different companies may vary depending on a consumer’s self-construal. In addition, this proposed effect will vary depending on the perceived similarity of brands. The results from the two studies show that when the perceived similarity of brands is high, the spillover effect of a product-harm crisis to its competing brand of a different company is greater for consumers with interdependent self-construals, in comparison to those with independent self- construals. Our findings extend theoretical knowledge of a spillover effect and also provide meaningful managerial implications to global corporations.